Tilray is Smokin'
Marijuana stock Tilray Inc. (symbol TLRY) rocketed higher on Monday, climbing as high as $7.99 for a gain of about 10%. The stock traded on heavy volume, as investors rushed in after comments from a trader appearing on CNBC's Halftime Report.
Tilray traded quietly at Monday's open, but took off around lunchtime when CNBC contributor Jon Najarian pointed out unusual options activity in the stock. Options can leave clues about institutional buying or selling.
Here is Najarian's segment:
Najarian highlighted heavy buying in Tilray $7.50 call options, and pointed out that the volume on those options had tripled. On the 5-minute intraday chart, you can see heavy volume piling into the stock as news of Najarian's comments began to spread.
On the daily chart, Tilray is blasting out of a major support level, located at $6.75 (black dotted line).
Tilray famously skyrocketed to $300 per share in 2018, as hot money flowed indiscriminately into the marijuana sector. The stock then proceeded to lose nearly 99% of its value before finding its footing and forming support.
Now buyers are interested in the stock once again. In the current momentum-based environment, Tilray could go a long way.
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