Celsius is acquiring rival Alani Nutrition for $1.8 billion
Celsius Holdings Inc (NASDAQ:CELH) is on track for its largest percentage gain since November 2020, last seen up 26.9% at $32.40. The energy drink company reported adjusted fourth-quarter earnings of $0.14 per share on $332 million in revenue, topping analyst expectations.
Investor enthusiasm was further fueled by Celsius’ announcement of a $1.8 billion cash-and-stock acquisition of rival Alani Nutrition, a move that strengthens its position in the energy drink market.
Options traders are piling on, with more than 118,000 calls and 28,000 puts traded so far -- 11 times the intraday average. The most popular contracts are the March 40 and June 40 calls, respectively, signaling bullish sentiment extending into mid-year.
Today’s rally marks a strong turnaround for CELH, which was down 3.1% year-to-date before this surge. Celsius stock is trading at its highest level since mid-October and has cleared its 100-day moving average, a key technical level that had acted as resistance since June 2024 and stifled multiple rally attempts since December.
A short squeeze could be fueling today's melt up. Short interest jumped 24.4% over the last month, with the 37.19 million shares sold short accounting for nearly 25% of the stock’s available float. At current trading volumes, it would take nearly five days for short sellers to cover.
Options traders are in luck as Celsius stock's Schaeffer's Volatility Scorecard (SVS) ranks at 99 out of a possible 100. This suggests CELH tended to exceed options traders' volatility expectations over the past 12 months.