HighVolume Strategy Posts 166.71% Return as Monster Beverage Slides to 180th in Liquidity Ranking Amid Alcohol Segment Woes

Monster Beverage (MNST) closed at a 1.59% decline on August 11, 2025, with a trading volume of $540 million, representing a 31.48% drop from the previous day’s activity and ranking 180th in market liquidity. Despite reporting record quarterly net sales of $2.11 billion—a 11.1% year-over-year increase—investor sentiment was dampened by underperformance in its alcohol segment, which saw an 8.6% sales decline. The energy drink division, contributing $1.94 billion in revenue, failed to offset concerns over margin pressures and strategic challenges in non-core business units.

The stock’s technical indicators highlighted a bearish near-term outlook, with price testing the 200-day moving average at $56.3951. Options activity reflected heightened speculative positioning, including a surge in put options with a 792.38% leverage ratio. Analysts noted divergent market dynamics, as Coca-Cola (KO) gained 0.355% in the non-alcoholic beverages sector, contrasting MNST’s struggles. While management emphasized pricing strategies and supply chain optimizations to improve gross margins to 55.7%, the alcohol segment’s performance continued to weigh on overall market confidence.

Backtest results for a high-volume trading strategy revealed significant outperformance, with a 166.71% return from 2022 to the present, far exceeding the benchmark’s 29.18%. This underscores the impact of liquidity concentration on short-term momentum, particularly in volatile markets. The strategy’s success highlights the advantages of leveraging high-volume stocks for diversified, short-term gains amid fluctuating sector performances.