CGC call options are popular today
The shares of Canopy Growth Corp (NYSE:CGC) are up 1.8% to trade at $19.77 today, after the Canadian cannabis company inked a deal with Canadian rapper Drake to launch joint venture More Life Growth. The cannabis producer will be based in Toronto, with Drake holding 60% stake in the company, and CGC maintaining the other 40%.
It's been an ugly stretch for Canopy Growth stock, which fell to a record low low of $17.90 on Oct. 14. In fact, CGC shares have given up 40% just in the past three months, with recent resistance emerging at the 30-day moving average. Year-over-year, CGC is down 57%.
Over in the options pits, calls hold the advantage. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has racked up a 10-day call/put volume ratio of 3.65. This ratio registers in the 90th percentile of its annual range, pointing to a much healthier-than-usual appetite for bullish options bets over bearish in the past two weeks.
Today is more of the same. In just the first hour of trading, over 9,000 calls have changed hands -- roughly triple the average intraday amount, and eight times the number of puts traded. Leading the charge is the November 25 call, which accounts for nearly 5,000 of the contracts traded. There are also new positions being opened at the weekly 11/22 23.50-strike call, with both options encompassing the company' fiscal second-quarter earnings report, tentatively due before the open on Nov. 14.