There has been some discussion of legalizing Sunday alcohol sales in Georgia to boost revenue to the state. Instead of boosting revenue to the state with alcohol, let’s take a look at how alcohol can boost our revenue. Here are some well known alcohol companies.
TAP Molson Coors Brewing Co
BUD Anheuser-Busch Inbev
SAM Boston Beer Co
HOOK Craft Brewers Alliance
DEO Diageo Plc
As we can see most of these look pretty terrible. Good old Sam Adams appears to have some potential opportunity. It appears to be range bound since the gap up in December. The low end of support is around 88. There is a bounce off this with a two day rally. If it moves above the 50 day it could be a good entry point. A bull put spread of 90/85 might be a good play for a 1.30 Credit. Adding another pair of legs on the call side at 100/105 to create an Iron Condor for a .60 Credit could also be a good play after the price rises. Exiting or hedging each side of the iron condor with a butterfly debit spread can also give you some breathing room. Earnings will be announced on March 9 so there is risk that SAM could miss or it could have upside risk if we go with an Iron Condor. These options also aren’t very liquid so there is the risk of not being able to exit if there is movement that doesn’t go our way. This may be a good time to enjoy a Sam Adams in our glass, but not in our portfolio.
