Coke's Pot Prospects Push Tilray Stock Higher

However, some TLRY options traders are calling a short-term top

Sep 17, 2018 at 1:23 PM
facebook X logo linkedin


Coca-Cola Co (KO) said it is "closely watching" the cannabis drinks industry, which is "evolving quickly" -- especially with Canada set to legalize recreational marijuana on Oct. 17. Against this backdrop, and with Constellation Brands' (STZ) recent investment in Canopy Growth (CGC) still fresh on investors' minds, the shares of fellow Canadian weed stock Tilray Inc (NASDAQ:TLRY) are higher today -- and options volume is popping.

Tilray stock was last seen 10.3% higher to trade at $120.30 -- set for its highest close ever. The shares began trading in mid-July, with an initial public offering (IPO) price of just $17, but have exploded in that time frame, amid skyrocketing hopes for the medical marijuana industry. The shares touched a record high of $127.27 just last week, before taking a breather on Friday, and have soared more than 290% in the past month.

TLRY stock chart sept 17

So far today, roughly 35,000 calls and 23,000 Tilray puts have changed hands -- about 1.8 times the average intraday pace. It looks like some speculators are calling a short-term top for TLRY shares, selling to open the September 145 call -- one of the most active options on the day. By writing the calls to open, the sellers expect the stock to remain south of $145 through the close on Friday, Sept. 21, when the options expire. In this event, the calls will expire worthless, allowing the traders to retain the entire net credit received at initiation.

Today's appetite for short calls runs counter to the growing trend seen on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the past two weeks, TLRY speculators have bought to open 1.62 calls for every put, per the exchanges. The October 90 call -- which expires two days after Canada legalizes weed -- has been most popular, with more than 5,600 contracts added in this time frame. This in-the-money strike is now home to peak open interest among all series, with more than 5,600 contracts outstanding.

 

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