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Perfect Beverage Buy for Put Traders
BUD looks ripe for a round of downgrades
Now looks like a perfect time to speculate on Anheuser-Busch stock’s next move lower with options
The shares of Anheuser Busch Inbev SA (NYSE:BUD) are in the midst of a bear flag breakdown on the charts, with failure at the 21-day exponential moving average as well as the longer-term 320-day moving average. That failure also occurred near the security's -10% year-to-date level, which is double BUD's 2020 lows. In addition, the shares are breaking below their 2020 highs, which makes now the perfect time to buy BUD puts.
There's ample room for downgrades amongst the brokerage bunch, as three of the nine analysts in coverage still sport a "strong buy" rating. Further, short interest is very low at the moment, with the 5.35 million shares sold short account for just 0.3% of the stock's available float.
Anheuser-Busch stock premiums can be had for a bargain at the moment. This is per the security's Schaeffer's Volatility Index (SVI) of 20%, which sits higher than just 6% of readings from the past 12 months. What's more, its Schaeffer's Volatility Scorecard (SVS) stands at a high 92 out of 100, indicating the equity has exceeded options traders' volatility expectations of the past year -- a boon for buyers.
Subscribers to Schaeffer's Weekend Trader options recommendation service received this BUD commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
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