Call Trading Turns Red-Hot for Middling Pot Stock

Analysts, meanwhile, are more hesitant

Deputy Editor
Apr 26, 2021 at 1:58 PM
facebook X logo linkedin

The shares of Canadian cannabis company Sundial Growers Inc. (NASDAQ:SNDL) were last seen up 2.9% to trade at 86 cents. After an extended drought on the charts, Sundial stock rocketed to $3.96 on Feb. 11. This  rally quickly lost steam, succumbing to  pressure from the 10-day moving average, which pushed the security below the $1 level, though it still has long-term support from the 200-day trendline. Despite the struggle SNDL has faced, the equity remains up 81.6% in 2021, and options traders are keeping the stock on their radars.

SNDL Chart April 26

Despite the equity's recent downward trend, call traders have been undeterred, speculating on plenty of upside for the cannabis stock. In fact, SNDL just landed on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the past two weeks, where new names are highlighted in yellow. According to this data, 533,877 calls and 59,964 puts were exchanged over this two-week period, with the most popular contract in this timeframe being the weekly 4/23 1-strike call, followed by the weekly 4/30 1-strike call.

Most Active Options April 26

Today, Sundial stock is seeing right around the average intraday call volume, with 72,000 crossing the tape versus just 3,643 puts. The weekly 4/30 1-strike call is the most popular, distantly followed by the weekly 5/7 1-strike call. This shows options traders are continuing to speculate on the security's ability to begin moving out of penny stock territory in the near future.

Analysts, meanwhile, aren't as sold on SNDL. In fact, all five brokerage covering the equity rate it a tepid "hold" or worse. Additionally, the stock's 12-month consensus target price of 78 cents is a 13.2% discount to current levels.


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 calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI