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Plug Power Stock Pops on Financial Statements

Options traders are targeting more gains this month for PLUG

Deputy Editor
May 14, 2021 at 10:47 AM
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The shares of Plug Power Inc (NASDAQ:PLUG) are surging today, up 12.4% to trade at $24.69 at last check, after the alternative energy company completed the restatement of its previously issued financial statements. Plug Power reaffirmed statements for the full years of 2018 and 2019, as well as quarterly filings for 2019 and 2020. It noted that the adjustments did not impact its cash position or business operations. Investors are also awaiting the company's earnings, which will come out at an unspecified time on Monday, May 17.

Since its January 26 14-year high of $75.49, PLUG has been tumbling down the charts to the tune of a 27% year-to-date deficit. The equity still sports an impressive 507.8% year-over-year lead, while long-term support at the 320-day moving average helped contain the pullback this month. 

A shift in the options pits could mean additional tailwinds for the stock, too. This is per PLUG's Schaeffer's put/call open interest ratio (SOIR) of 0.80, which stands higher than all other readings from the past year. This means short-term options players haven’t been more put-biased during this time.

Options traders are chiming in amid the upbeat price action, with overall volume running at three times what's typically seen at this point. Expiring today, the weekly 5/14 25-strike call is the most popular, as well as the May 30 call with new positions being opened at both.

The good news for these options traders is that Plug Power stock has tended to exceed these volatility expectations during the past 12 months. This is based on its Schaeffer's Volatility Scorecard (SVS) of 97 (out of 100).

 

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