Molson Coors (TAP)

Taking a page out of Morgan Stanley research on May 27 with an upgrade to Overweight on better than compelling risk/reward balance with price target of $83. Before we dive in further, here are a few notable observations from recent option activity:

April 9 – Buyer of 4,000 Jan’16 65/87.5 Bullish Risk Reversal for $1.25 net debit
April 22 – Buyer of 1,400 Jan’16 85 Call for $3.50
April 24 – Buyer of 11,000 July 77.5 Call for $3.20
May 18 – Buyer of 4,000 October 85/95 Call Spread for $1.60
May 20 – Buyer of 1,200 October 77.5 Call for $4.40
May 28 – Buyer of 1,500 October 80 Call for up to $3.20

Additionally, plenty of upside call buying and put selling have been observed in July and Octobe