Schaeffer's Top Stock Picks for '25

Options Bulls Abuzz After Plug Power Strikes Deal with Amazon

More than 98,000 calls have been traded already today

Deputy Editor
Aug 25, 2022 at 12:14 PM
facebook X logo linkedin


The shares of Plug Power Inc (NASDAQ:PLUG) are up 5.8% to trade at $29.11 at last check, following the company's new agreement with Amazon.com (AMZN). The hydrogen fuel cell provider just inked a deal to supply Amazon with green liquid hydrogen for some of its its transportation and building operations, with the arrangement set to begin in 2025. 

Just ahead of the session's halfway point, more than 98,000 calls have already exchanged hands in PLUG's options pits. That's good for quadruple the intraday average, and easily outpacing the roughly 37,000 puts traded so far. The two most popular contracts are the weekly 8/26 32- and 31-strike calls, and new positions are being opened at each. 

Those speculating today are in luck, as the equity sports affordable options at the moment. This is per PLUG's Schaeffer's Volatility Index (SVI) of 71%, which stands in the relatively low 21st percentile of annual readings, implying options traders are pricing in lower-than-usual volatility expectations. What's more, its Schaeffer's Volatility Scorecard (SVS) tally of 93 out of 100 suggests the equity tends to outperform said volatility expectations.

Shorts, meanwhile, are building their positions, meaning there is plenty of pessimism to unwind, which could push the security higher. Short interest rose 7.5% in the last two reporting periods, and the 70.32 million shares sold short account for a healthy 13.6% of the stock's available float.

Today's pop brought PLUG within a hair's breadth of its April 4, annual peak of $32.05 earlier today. While the shares have pulled back slightly over the course of the session, the $29 level has stepped in to contain any further drops and help Power Plug stock maintain a slim 3.7% year-to-date lead. An additional layer of support was found in the equity's 20-day moving average, which caught a notable pullback earlier this month.

PLUG Chart August 25

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter