MNST is fresh off a record high earlier this week
Next week marks a new month, and the summer season is officially in full swing. That means a whole new slate of seasonality trends to monitor, with Schaeffer's Senior Quantitative Analyst Rocky White breaking down the best S&P 500 stocks to own in June over the past 10 years. One notable name on the list is Monster Beverage Corp (NASDAQ:MNST), with the energy drink manufacturer boasting an intriguing technical setup to boot.
More specifically, looking back over the last decade, Monster Beverage stock boasts an average June return of 5.1%, with eight out of 10 returns positive. That's good for third-best on the list, and the only beverage name to be found among the lineup.
Breaking down MNST even further, the stock --which at last check was trading at $70.87 -- hit a new record high of $71.64 yesterday, and now boasts a 26% lead for the quarter. During this breakout, the shares have relied on their 10-day moving average to contain pullbacks.
The options pits show that calls hold the advantage, amid limited absolute volume. In the past 10 days, 2,174 calls have changed hands on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to a meager 210 puts. The resultant call/put volume ratio of 10.35 sits in the 89th percentile of its annual range, suggesting a healthier-than-usual appetite for bullish bets of late.
The good news for options traders is that MNST's near-term options can be had for a bargain at the moment. The security's Schaeffer's Volatility Index (SVI) stands up at 27%, in the 11th percentile of its annual range. This indicates that now is an attractive time to jump aboard the beverage name with options.