How are STZ long put max profit and max loss calculated?

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the STZ long put priced from the end-of-day chain at a 30-day expiry (ATM IV 29.88%), the computed maximum profit is $13,669.00 per contract and the computed maximum loss is -$330.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STZ long put?

The breakeven for the STZ long put priced on this page is roughly $136.70 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current STZ market-implied 1-standard-deviation expected move is approximately 8.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STZ implied volatility affect this long put?

STZ ATM IV is at 29.88% with IV rank near 37.54%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

STZ Long Put Strategy

STZ (Constellation Brands, Inc.), in the Consumer Defensive sector, (Beverages - Wineries & Distilleries industry), listed on NYSE.

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. It provides beer primarily under the Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands. The company offers wine under the 7 Moons, Cook's California Champagne, Cooper & Thief, Crafters Union, Kim Crawford, Meiomi, Mount Veeder, Ruffino, SIMI, The Dreaming Tree, Charles Smith, The Prisoner Wine Company, Robert Mondavi, My Favorite Neighbor, and Schrader; and spirits under the Casa Noble, Copper & Kings, High West, Mi CAMPO, Nelson's Green Brier, and SVEDKA brands. It provides its products to wholesale distributors, retailers, on-premise locations, and state alcohol beverage control agencies. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

STZ (Constellation Brands, Inc.) trades in the Consumer Defensive sector, specifically Beverages - Wineries & Distilleries, with a market capitalization of approximately $24.19B, a trailing P/E of 14.45, a beta of 0.42 versus the broader market, a 52-week range of 126.45-196.91, average daily share volume of 2.0M, a public-listing history dating back to 1992, approximately 11K full-time employees. These structural characteristics shape how STZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.42 indicates STZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. STZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on STZ?

A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.

Current STZ snapshot

As of May 15, 2026, spot at $142.15, ATM IV 29.88%, IV rank 37.54%, expected move 8.57%. The long put on STZ below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this long put structure on STZ specifically: STZ IV at 29.88% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 8.57% (roughly $12.18 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on STZ should anchor to the underlying notional of $142.15 per share and to the trader's directional view on STZ stock.

STZ long put setup

The STZ long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With STZ near $142.15, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STZ chain at a 28-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 STZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$140.00	$3.30

STZ long put risk and reward

Net Premium / Debit: -$330.00
Max Profit (per contract): $13,669.00
Max Loss (per contract): -$330.00
Breakeven(s): $136.70
Risk / Reward Ratio: 41.421

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

STZ long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on STZ. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$13,669.00
$31.44	-77.9%	+$10,526.10
$62.87	-55.8%	+$7,383.19
$94.30	-33.7%	+$4,240.29
$125.73	-11.6%	+$1,097.38
$157.16	+10.6%	-$330.00
$188.58	+32.7%	-$330.00
$220.01	+54.8%	-$330.00
$251.44	+76.9%	-$330.00
$282.87	+99.0%	-$330.00

When traders use long put on STZ

Long puts on STZ hedge an existing long STZ stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying STZ exposure being hedged.

STZ thesis for this long put

The market-implied 1-standard-deviation range for STZ extends from approximately $129.97 on the downside to $154.33 on the upside. A STZ long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long STZ position with one put per 100 shares held. Current STZ IV rank near 37.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on STZ should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, STZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STZ-specific events.

STZ long put positions are structurally bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. STZ positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STZ alongside the broader basket even when STZ-specific fundamentals are unchanged. Long-premium structures like a long put on STZ are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current STZ chain quotes before placing a trade.

Frequently asked questions

What is a long put on STZ?: A long put on STZ is the long put strategy applied to STZ (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With STZ stock trading near $142.15, the strikes shown on this page are snapped to the nearest listed STZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STZ long put max profit and max loss calculated?: Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the STZ long put priced from the end-of-day chain at a 30-day expiry (ATM IV 29.88%), the computed maximum profit is $13,669.00 per contract and the computed maximum loss is -$330.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STZ long put?: The breakeven for the STZ long put priced on this page is roughly $136.70 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current STZ market-implied 1-standard-deviation expected move is approximately 8.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a long put on STZ?: Long puts on STZ hedge an existing long STZ stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying STZ exposure being hedged.
How does current STZ implied volatility affect this long put?: STZ ATM IV is at 29.88% with IV rank near 37.54%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.