On CNBC’s “Trading Nation,” Todd Gordon said he likes Constellation Brands, Inc. (NYSE:STZ) for a variety of reasons. It’s the largest alcohol conglomerate in the U.S. and it has a great beer, wine and spirits portfolio. It also owns a 37% share of Canopy Growth Corp (NASDAQ:CGC).
Gordon noticed the stock tested the resistance level four times and he said that when the market tries something three or four times, it usually gets it. He is bullish on the stock and he owns it in his portfolio. If the stock drops below $235, the breakout probably won’t happen, explained Gordon.
To make a bullish bet, he would buy the July $245/$255 call spread for $3.30. The trade breaks even at $248.30 or 2.77% above the closing price on Thursday. He would close the trade if the premium drops to $1.65.
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