Beverage Stock Pivots Lower on Revenue Miss

The beverage name also reported a profit beat for the fiscal second quarter

Constellation Brands, Inc. (NYSE:STZ) stock is brushing off a fiscal second-quarter earnings beat, after the beverage name also reported a revenue miss. Additionally, the company reiterated its full-year profit outlook. STZ was last seen down 2.2% to trade at $250.11.

Shares are testing a floor at the 40-day moving average, after their latest rally ran out of steam at $261. The security is pacing for a fourth-straight daily loss, while also eyeing its worst day since Aug. 5. For the year, however, Constellation Brands stock still sports a 2.8% lead.

Short-term options traders are overwhelmingly bearish. This is per the equity’s Schaeffer’s put/call open interest ratio (SOIR) of 1.43 that ranks higher than all readings from the past year. 

Drilling down to today’s options activity, 2,256 calls and 2,398 puts have crossed the tape so far, which is seven times the intraday average volume. The most active contract is the weekly 10/4 260-strike call, followed closely by the 245-strike put in that same series.

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