The contents in red wine formerly shown to retard aging in animals could prevent adult-onset diabetes and help with the negative effects of a diet rich in fat, according to a recent medical study published in Nature.
The compound, resveratrol, was not shown to have anti-aging effects in mice, however it did show some of the effects of a calorie reduced diet. A calorie-reduced diet can extend the life span of lab animals 30 to 40%.
It should also be noted that resveratrol is also available in over-the-counter dietary supplements. However, the doses in the study were at a level far greater than could be obtained through dietary supplements – consistent with red wine consumption. Also, resveratrol pills have yet to be clinically tested in a large setting, so the efficacy of the supplements is not known.
Health benefits from red wine have been suspected and proven in other lab studies in the past. But this new study lends further credence to the notion and may help push stocks related to wine production and sales higher. The question of how to identify stocks related to wine retailers and producers is an issue.
Using PowerOptions SmartSearchXL for covered calls in the Beverages – Wineries and Distilleries category, I was able to identify a covered call for Constellation Brands (STZ). Constellation Brands, Inc. is an international producer and marketer of beverage alcohol brands. They are the sole US distributor of Corona beer and is the largest US supplier of wine by volume (monster.com).
The covered call returned for STZ was all right, but I wanted to look a little deeper into the trades using alternative option strategies. By using PowerOptions’ StrategySearch Summary tool set for a bullish outlook, the following trade was uncovered.
The covered call opportunity that was found using the SmartSearchXL was very lucrative (or potentially profitable), but one can’t help but wonder what other profitable bullish strategies existed for STZ. With this in mind, I checked the Strategy Search Summary tool set for a bullish outlook and the following bull-call debit spread trade was uncovered:
| Bull-Call Debit Spreads CONSTELLATION BRANDS INC (STZ) $27.87 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sell Option |
Strike | Bid | Buy Option |
Strike | Ask | %return | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STZLY | 06 DEC 27.50 | $0.95 | STZLE | 06 DEC 25.00 | $3.10 | 16.30% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This is a solid trade if your bullish on wine, and with the buzz surrounding the recent news you may find it desirable. The trade per contract has a break even of $27.15 with a max exposure of $215.00 and a max profit of $35.00.
If you would like to learn more about the covered call I mentioned earlier, and it was a juicy one with 3.4% downside protection, join PowerOptions for a free 14-day trial membership and find it on PowerOptions’ SmartSearchXL option search engine or consider our educational kit on the covered calls strategy, “Aggressive Strategy for the Conservative Investor“. This educational kit, written by the founders of PowerOptions, will teach you the ins and outs of the covered call strategy. It also includes two free months of PowerOptions and a 30-day risk free guarantee.
PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. For those seeking to execute a call debit spread investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing options positions. You can find potential trades by individual strategies on all optionable stocks using the patented SmartSearchXL tool, or search by one stock at a time for all strategies using the StrategySearch Summary tool.
PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered call, naked put and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags]investment strategy, iron condor, option income, options trading, poweroptions , stock option trading, stock options, Constellation Brands, Inc., STZ, resveratrol[/tags]