Q2 STOCKS TO BUY

Options Traders Blast the Latest Surging Weed Stock

PYX stock hit a new annual high earlier

Oct 2, 2018 at 3:12 PM
facebook X logo linkedin


The shares of Pyxus International Inc (NASDAQ:PYX) are surging today on news its indirect subsidiary, Goldleaf Pharm, was -- alongside Tilray (TLRY) -- awarded a medical cannabis cultivation license from Health Canada. PYX stock is up 18.7% at $27.50, fresh off a four-year high of $30.76, and options traders are targeting even more upside.

At last check, 3,203 calls and 1,076 puts have changed hands on PYX, three times what's typically seen, and total options volume at a new annual peak. The October 30 call is most active, and all signs suggest new positions are being purchased here for a volume-weighted average price of $3.22. If this is the case, breakeven for the call buyers at the close on Friday, Oct. 19 -- two days after Canada legalizes weed -- is $33.22 (strike plus premium paid), territory not charted since August 2013.

Amid the stock's surge today, short-term volatility expectations have skyrocketed, with PYX's 30-day at-the-money implied volatility (IV) of 170.6% at a new 52-week peak. Meanwhile, the equity's 30-day IV skew of negative 0.5% ranks in the 86th percentile of its annual range, indicating short-term calls are pricing in lower volatility expectations than their put counterparts.

Today's upside just continues PYX's rally off its late-July lows near $13.50. However, the $29-$30 region is rearing its ugly head as resistance once again, with this neighborhood halting rally attempts in March and April. Year-to-date, Pyxus International stock is up 106.6%.

pyx stock daily chart on oct 2

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter