The cannabis sector is on the rise after Germany made it legal
Cannabis stocks are continuing their recent rally, as legalization support continues to build in the U.S and overseas. Since last week, investors have been eyeing Germany in particular, where possession of marijuana will be legalized April 1, making it the third country in the European Union (EU) to do so.
The shares of Tilray Brands Inc (NASDAQ:TLRY) are up 9.3% at $2.35 at last glance, completely recovering from yesterday's dip following last week's massive 33.5% rise. Tilray's subsidiary 10 Barrel Brewing also unveiled its newest ready-to-drink canned cocktails today.
Options bulls are blasting TLRY amid the reports. So far, 114,000 calls have been exchanged in comparison to 17,000 puts, with overall options volume already at 3 times the average daily volume. The weekly 3/28 2.50-strike call is the most popular by far, with new positions being opened there.
Canopy Growth Corp (NASDAQ:CGC) stock is soaring even higher, up 16.5% at $7.22 at last glance, and earlier as high as $8.24. CGC added a whopping 149.7% last week, breaking above long-term pressure at its 200-day moving average on Friday. Since the start of the year, the equity is up 42.3%.
CGC has already seen 5 times its average daily options volume, with 84,000 calls and 24,000 puts across the tape so far. The weekly 3/28 8-strike call is the most active contract, with new positions being bought to open there.