BLNK call and put volume has already hit an annual high today
The shares of Blink Charging Co (NASDAQ:BLNK) have rocketed 34% higher to trade at $4.55, likely thanks to rumors of a partnership with Tesla (TSLA). BLNK stock is eyeing its best session since May, and option bulls are swarming the penny stock.
More specifically, Blink stock charged up the charts in May after the company announced a partnership with Amazon's (AMZN) Whole Foods, and subsequently reported blowout earnings. Since peaking at $8.65 on May 17, BLNK has given up roughly half of those gains, but is set to notch a second straight finish atop its 10-day moving average -- something we haven't seen in nearly three months.
So far today, more than 1,300 Blink Charging call options have changed hands -- 23 times the average intraday volume, and already more than twice the stock's previous annual high of 515 calls traded, set June 12. Put volume has also touched a new high of 375 contracts traded, compared to the previous high of 231 puts, set last Friday, Aug. 3.
Digging deeper, most of today's action has transpired at the weekly 8/10 5-strike call, where more than 800 contracts have been exchanged. Speculators buying the calls to open expect BLNK shares to topple $5 by Friday's close, when the short-term options expire. However, in order to surpass this strike, the stock would need to take out its descending 200-day moving average, which kept BLNK's May momentum in check.