Options Traders Target Plug Power Stock After Walmart Deal

PLUG is taking a big chunk out of its year-to-date deficit

Deputy Editor
Apr 19, 2022 at 10:28 AM
facebook X logo linkedin


Plug Power Inc (NASDAQ:PLUG) stock is moving higher this morning, last seen up 4.7% to trade at $26.75. The alternative energy company just announced an agreement to supply up to 20 tons of liquid green hydrogen per day to blue-chip retail giant Walmart (WMT). The latter plans to use the hydrogen to power its material handling lift trucks. 

Options traders are swarming PLUG in response to the news. Options volume is running at four times the intraday average, with more than 21,000 calls and 7,719 exchanging hands so far. New positions are being opened at the two most popular contracts, the weekly 4/22 27- and 30-strike calls, indicating the potential upside these traders see for the shares by Friday's close.

A broader look shows options traders have favored puts over the last 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PLUG's 50-day put/call volume ratio ranks higher than 90% of readings from the past year, suggesting a healthier-than-usual appetite for long puts.

The good news for these traders is Plug Power stock's Schaeffer's Volatility Scorecard (SVS) stands at 94 out of  100. In other words, the security has exceeded options traders' volatility expectations in the last year.

It's also worth noting that short interest is beginning to unwind, down 5.4% in the most recent reporting period. The 65.46 million shares sold short account for 12.6% of the stock's available float, or just over three day's worth of pent-up buying power.

In October, PLUG saw a similarly large pop after revealing partnerships with Airbus (AIR) and Phillips 66 (PSX). Those key deals helped the shares hit annual highs, before failing at the $46.50 level in mid November, and eventually falling to a two-year low of $17.51 January 2022. However, today's positive price action has brought Plug Power stock's year-to-date deficit down to 5.4%.

 

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 C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI