Cannabis Option Traders Find Their ‘Stash’…Again

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TLRY Chart

TLRY is currently testing its rising trendline from the September low near $4.41. Following the spike higher on November 6, the price fell back quickly to support and made a smaller rally in late November. As the price failed near previous resistance at $10, the price fell back and is currently testing the rising support level. The price is currently setting up with a bullish harami candle pattern and has a near-term target of $10.

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Conclusion

Since the March low, this type of option activity on the cannabis industry has been a consistent indication of potential bullish movement. The one detracting factor is that it’s for this week’s expiration and the strikes are either ITM or close to the money. However, the prices are setting up near projected support levels, and that expectations in the near-term is to retest recent highs. Given the bigger theme of supportive initiatives that passed, it is encouraging for these stock testing even higher price in the coming months.

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