Option Trade 
Monster Beverage Corporation (NASDAQ:MNST) Calls 
Monday, January 11, 2016

**OPTION TRADE: Buy the MNST Mar 2016 160.000 call (MNST160318C00160000) at approximately $3.50. Place a pre-determined sell at $7.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.40.

by Ian Harvey

January 11, 2016

Monster Beverage Corporation (NASDAQ: MNST), a marketer and distributor of energy drinks, fruit juices, fruit juice smoothies, juice cocktails, iced teas, lemonades, and still water, will hold an analyst meeting tomorrow, and a good story about European sales should be forthcoming. Therefore it is recommended purchasing options based on this fact combined with other positive details below.

Monster Beverage Corporation is amid the topmost stocks in today’s market. The current market cap of Monster Beverage Corporation exhibits the basic determinant of asset allocation and risk-return parameters for its stocks.

Monster Beverage Corporation’s existing stock price is at $144.25. As of now, the target price for the company is measuring at $163.33. Monster Beverage Corporation’s ROA is rolling at 13.80%, following the ROI of 32.00%. Quick and current ratio is valued at 7.1 and 7.4 respectively.

The firm has a market cap of $29.24 billion and a PE ratio of 50.07. The stock’s 50 day moving average is $150.75 and its 200 day moving average is $142.50. Monster Beverage Corp has a 12 month low of $111.92 and a 12 month high of $160.50.

Several institutional investors have recently added to or reduced their stakes in the stock. Jennison Associates raised its position in Monster Beverage Corp by 25.9% in the third quarter. Jennison Associates now owns 3,662,137 shares of the company’s stock valued at $494,901,000 after buying an additional 753,819 shares in the last quarter. Eagle Asset Management raised its position in Monster Beverage Corp by 108.0% in the third quarter. Eagle Asset Management now owns 794,656 shares of the company’s stock valued at $107,388,000 after buying an additional 412,601 shares in the last quarter. Janus Capital Management raised its position in Monster Beverage Corp by 23.1% in the third quarter. Janus Capital Management now owns 799,310 shares of the company’s stock valued at $108,019,000 after buying an additional 149,830 shares in the last quarter. MUFG Americas purchased a new position in Monster Beverage Corp during the third quarter valued at $1,021,000. Finally, Southport Capital Management purchased a new position in Monster Beverage Corp during the fourth quarter valued at $417,000.

A group of brokerage firms have already released their forecasts for the company’s earnings and price direction ahead. According to analysts reports, the consensus price target for the company is set at 163.60 for the next one year. Based on the company’s trailing EPS of 2.88 during the previous twelve months, the First Call analysts are expecting the company to report EPS of 0.80 in the next quarter. The EPS estimates for the current year and the next year is set at 3.08 and 3.93 respectively.

Monster Beverage Corp has received an average rating of “Buy” from the twenty-one brokerages that are covering the company.

SunTrust increased their price target on Monster Beverage Corp to $155.00 and gave the stock a “neutral” rating in a report on Friday, November 6th. Stifel Nicolaus cut their price objective on Monster Beverage Corp from $170.00 to $165.00 and set a “buy” rating for the company in a research report on Thursday, October 15th. Evercore ISI reiterated a “buy” rating on shares of Monster Beverage Corp in a research report on Tuesday, October 20th. Susquehanna increased their price objective on Monster Beverage Corp from $117.00 to $151.00 and gave the stock a “neutral” rating in a research report on Friday, November 13th. Finally, Wells Fargo reiterated a “hold” rating on shares of Monster Beverage Corp in a research report on Sunday, November 8th.

Harvey’s Options Volatility Indicator

Conclusion

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

**OPTION TRADE: Buy the MNST Mar 2016 160.000 call (MNST160318C00160000) at approximately $3.50. Place a pre-determined sell at $7.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.40.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



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