After a triple-digit loss to start the session, the Dow has turned positive. The market is bouncing off their lows after a stronger-than-expected Institute for Supply Management (ISM) report, so to speak.

The market got a lift after the report said manufacturing unexpectedly grew in June but investors are ignoring that the prices companies pay for fuel and raw materials continues to grow while at the same time demand for their products is also slowing. So the report was good but after it is digested, we could head back lower, plus we get the Auto Sales report in about an hour.

Constellation Brands (STZ, $20.89, up $1.03) is trading higher after beating earnings estimates by two cents. The stock hit a high of $21.80 out of the gate but has given back half of its earlier gains. The July 20 calls (STZGD, $1.20, up $0.55) are up 85% which would have offset the July 17.50 puts (STZSW, $0.05, down $0.10) had you played a strangle on the earnings announcement. The total cost of the trade would have been about $0.90 and at current levels you are looking at a 33% gain. Not too shabby.

General Motors (GM, $10.90, down $0.60) is under $11 as the July 10 puts (GMSB, $0.73, up $0.14) are up 24%…

Rick Rouse