AAL

What's Really Motivating Plug Power Inc. (PLUG) Call Buyers?

Plug Power Inc (NASDAQ:PLUG) is surging on shipment data

Jul 7, 2015 at 2:22 PM
facebook X logo linkedin


Plug Power Inc (NASDAQ:PLUG) is bucking the broad-market trend lower, up 12.3% at $2.51. The energy stock is getting a boost from the company's impressive current-quarter shipments of fuel cells and hydrogen infrastructure equipment, which have paved the way for record single-quarter revenue. This could be good news for option bulls, who have been buying to open calls at a breakneck pace of late.

Specifically, during the past 10 weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open nearly 11 PLUG calls for every put. The corresponding call/put volume ratio of 10.87 sits a mere 2 percentage points from a 12-month high. Today, in fact, buy-to-open activity is detected at the July and weekly 7/24 2.50-strike calls.

Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.50. In other words, call open interest doubles put open interest, among PLUG options set to expire in the next three months.

However, recent call buyers -- especially at out-of-the-money strikes -- aren't necessarily bullish. After all, 18.4% of PLUG's float is sold short, representing nearly three weeks' worth of trading activity, at typical volumes. In other words, some of the recent call buyers may simply be short sellers hedging their downside bets.

Adding credence to this theory is Plug Power Inc's (NASDAQ:PLUG) long-term technical track record. Heading into today's session, the stock had lost half of its value year-over-year, touching an annual low of $2.17 just yesterday. 
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.