Say No to This Weed Stock

TLRY has run up to a historically bearish trendline

Managing Editor
Jan 21, 2020 at 12:43 PM
facebook X logo linkedin

The last time we checked in with Tilray Inc (NASDAQ:TLRY), it was New Years Eve, and options traders were blasting the weed stock's recent bottom. Fast forward three weeks, and TLRY has rallied into a trendline that has historically bearish implications for the next month. 

More specifically, Tilray stock is trading within one standard deviation of its overhead 80-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, two similar run-ups to this trendline have occurred in the last three years. One month after these signals, TLRY was lower by an average of 25.6%, with both returns negative.

Daily Stock Chart TLRY

At last check, Tilray stock was up 4% to trade at $21.29, so a drop of similar magnitude would mean nearly all of the stock's 27.3% year-to-date gain would be erased by next month. Year-over-year, the shares have taken almost a 72% cut. And if that's not enough, TLRY's 14-Day Relative Strength Index (RSI) currently sits at 64, on the cusp of overbought territory -- further reinforcing the case for an imminent pullback.

Among options traders, there's a big appetite for calls. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TLRY's 10-day call/put volume ratio is perched at 6.84 and ranks 1 percentage point from an annual high. However, considering a whopping 48.2% of the equity's total available float is sold short, its possible some of these calls could be shorts hedging against any upside risk.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI