Tilray is making its way onto Reddit’s “meme” list of stocks
It looks like cannabis stocks are in the “Meme” share fray, as proportions of Tilray Inc (NASDAQ: TLRY) were last up 10.6% at $ 22.36. Irwin Simon, CEO of Tilray, welcomes the attention of retail investors and says, “We love having them as part of our shareholder base” as he believes their in-depth knowledge of the company and its products make them perfect investors . In addition, there are options traders at the mini rally who are flooding the cannabis company with speculation from both sides of the aisle.
More precisely, calls and puts are traded at three times the average intraday amount, with 275,000 calls and 30,000 puts already crossing the band today. At the top are the weekly 6/11 22 and 25 strike calls, both of which open new positions. Buyers of these contracts expect more upside for Tilray stock through Friday, when the options expire.
However, this appetite for calls is nothing new. On the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), TLRYs Schaeffer’s 10-day call / put volume ratio of 9.47 is in the 72nd percentile of its annual range. This suggests a much healthier appetite for calls versus puts lately. However, considering that 43.2% of the total available float in the stock is controlled by short sellers, it is possible that some of those call purchases could be short positions that put you Options hedging against any unexpected advantage.
Now it actually looks like a good time to buy a security premium too. This corresponds to the Schaeffers volatility index (SVI) of the share of 125%, which ranks in the 15th percentile and points to currently low volatility expectations.
While Tilray stock is still far from its two-and-a-half-year high of $ 67 on February 10, it is up 173.6% year-to-date. Today’s positive price action is also causing stock trading to return to above the 80-day moving average, marking the first time since early April that TLRY will close above the trendline.