Plug Power has broken out, and now it's running like a horse.
optionMONSTER's Heat Seeker program detected bullish activity early
yesterday as traders paid $0.10 to $0.24 to purchase the Weekly
5.50 calls that expire on Friday. About 14,000 of those contracts
had traded by the closing bell, far above the strike's previous
open interest of just 2,274 contracts.
locked in the price where investors can buy stock in the
up-and-coming tech company, whose products are increasingly used in
forklifts, refrigeration units, and airport-luggage equipment. They
can generate significant leverage from a quick rally, which is
exactly what happened yesterday. (See our
PLUG was up 6 percent when the calls hit but ended the session with
a 13 percent gain to $5.69. The price of the short-term calls
to as much as $0.40.
The stock rallied more than 1,000 percent between early December
and March as investors discovered the
, as shown on our researchLAB market-analysis tool. Shares then
pulled back, found support around $4, and have been coming back to
life since breaking their 50-day moving average last week.
Overall option volume was 14 times greater than average in the
session, with calls accounting for a bullish 83 percent of the
(A version of this post appeared on
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