NBEV shares are set to close atop their 20-day moving average for the first time since early February, when the stock was putting in 2019 closing highs. What’s more, NBEV is pacing for its biggest single-session jump since November. Prior to today, the equity was trading at year-to-date lows, ending Friday’s session at $4.78.
buyers expecting NBEV to extend its upside momentum above the strikes through the close on Friday, when the options expire.” data-reactid=”24″>In early afternoon trading, New Age Beverages has seen roughly 30,000 calls and 11,000 puts cross the tape — seven times the average intraday volume, and pacing for the 99th percentile of its annual range. Most popular are the weekly 4/12 5.50- and 6-strike calls, with buyers expecting NBEV to extend its upside momentum above the strikes through the close on Friday, when the options expire.
Today’s appetite for short-term calls is more of the same for NBEV. The equity’s Schaeffer’s put/call open interest ratio (SOIR) stands at 0.51, indicating that call open interest nearly doubles put open interest among options expiring within three months. In other words, it seems near-term speculators were already bullish toward the drink maker even before today’s big Walmart announcement.
options insurance. Short interest represents 55% of NBEV’s total available float, and would take about a week to buy back, at the security’s average pace of trading. That’s plenty of fuel for a short squeeze to drive additional gains.” data-reactid=”26″>However, some of the recent call buying — particularly at out-of-the-money strikes — could be attributable to short sellers seeking options insurance. Short interest represents 55% of NBEV’s total available float, and would take about a week to buy back, at the security’s average pace of trading. That’s plenty of fuel for a short squeeze to drive additional gains.
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