Unusually Large Aurora Cannabis And Tilray Option Trades Following Post-Election Rally, , on November 6, 2020 at 7:57 pm

By ILP
On 11/06/2020
In Financial News
Tags:

Cannabis stocks have been on fire since Election day, and two of the hottest cannabis stocks have been Aurora Cannabis Inc (NYSE: ACB) and Tilray Inc (NASDAQ: TLRY).The huge moves in Tilray and Aurora over the past two days triggered some unusually large option trade on Friday as traders make massive bets on where cannabis stocks are headed next.Related Link: Cannabis Stocks Rebound As Dust Settles Following US ElectionThe Trades: On Friday, Benzinga Pro subscribers received dozens of option alerts related to unusually large trades of Tilray and Aurora options. Here are a handful of the biggest Tilray trades: * At 10:56 a.m., a trader sold 1,500 Tilray call options with an $11 strike price expiring on Nov. 20 at the bid price of $1.90. The trade represented a $285,000 bearish bet. * At 11:03 a.m., a trader bought 1,160 Tilray put options with a $10 strike price expiring on Dec. 18 near the ask price at $2.459. The trade represented a $289,420 bearish bet. * At 11:31 a.m., a trader bought 887 Tilray put options with an $11 strike price expiring on Nov. 13 at the ask price of $2.201. The trade represented a $195,228 bearish bet.Here are a handful of the biggest Aurora option trades on Friday: * At 9:33 a.m., a trader bought 1,090 Aurora call options with a $7 strike price expiring on Friday near the ask price at $2. The trade represented a $218,000 bullish bearish bet. * At 11:28 a.m., a trader bought 2,071 Aurora call options with a $10 strike price expiring on Friday at the ask price of 84 cents. The trade represented a $173,964 bullish bet. * At 11:38 a.m., a trader bought 677 Aurora call options with a $6 strike price expiring on Nov. 20 near the ask price at $4.594. The trade represented a $311,013 bullish bet.The three largest Tilray option trades of the morning were all bearish, while the three largest Aurora trades were bullish. Two of the three largest Aurora option trades involved contracts expiring on Friday, suggesting they were day trades rather than medium or longer-term bets on where Aurora’s share price is headed next.Why It’s Important: Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader.Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there’s no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given the relatively small sizes of the largest Tilray and Aurora trades by institutional standards, they were likely not institutional hedges.Bullish Election Results: It appears increasingly likely that Democrat Joe Biden has won the election, which could be good news for cannabis stocks from a federal level. Regardless of the outcome of the presidential election, cannabis investors scored key legalization victories in five different states. New Jersey, South Dakota, Montana and Arizona all legalized recreational marijuana. South Dakota and Mississippi also legalized medicinal marijuana.At this point, 31% of Americans live in states in which recreational cannabis use is legal. However, victories in so-called “red states” like South Dakota and Mississippi suggest the cannabis issue is becoming more bipartisan in nature.Tilray and Aurora are both Canadian companies, but U.S. federal legalization could represent a massive long-term growth opportunity for both. The way the two stocks are rallying this week may represent a shift in the market’s belief about if and when full US federal marijuana legalization will happen.At the same time, both Aurora and Tilray are extremely heavily shorted stocks, suggesting short covering could also be playing a role in this week’s trading action. As of late outstanding short positions for Aurora and Tilray represented 19.1% and 23.1% of the two stocks’ floats, according to S3 Partners. ACB Chart by TradingView new TradingView.widget( { “width”: 680, “height”: 423, “symbol”: “NYSE:ACB”, “interval”: “D”, “timezone”: “Etc/UTC”, “theme”: “light”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “f1f3f6”, “enable_publishing”: false, “allow_symbol_change”: true, “container_id”: “tradingview_44ad5” } ); Benzinga’s Take: It appears as of Friday morning, the largest option traders are more bullish on Aurora than Tilray. Traders will now wait and watch to see if the cannabis trade loses steam next week or whether the bullish momentum is just getting started.See more from Benzinga * Click here for options trades from Benzinga * Square Earnings Crush Expectations Yet Again, But What’s Next? * Wynn, Caesars Report Latest Brutal Casino Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.,

Unusually Large Aurora Cannabis And Tilray Option Trades Following Post-Election RallyCannabis stocks have been on fire since Election day, and two of the hottest cannabis stocks have been Aurora Cannabis Inc (NYSE: ACB) and Tilray Inc (NASDAQ: TLRY).The huge moves in Tilray and Aurora over the past two days triggered some unusually large option trade on Friday as traders make massive bets on where cannabis stocks are headed next.Related Link: Cannabis Stocks Rebound As Dust Settles Following US ElectionThe Trades: On Friday, Benzinga Pro subscribers received dozens of option alerts related to unusually large trades of Tilray and Aurora options. Here are a handful of the biggest Tilray trades: * At 10:56 a.m., a trader sold 1,500 Tilray call options with an $11 strike price expiring on Nov. 20 at the bid price of $1.90. The trade represented a $285,000 bearish bet. * At 11:03 a.m., a trader bought 1,160 Tilray put options with a $10 strike price expiring on Dec. 18 near the ask price at $2.459. The trade represented a $289,420 bearish bet. * At 11:31 a.m., a trader bought 887 Tilray put options with an $11 strike price expiring on Nov. 13 at the ask price of $2.201. The trade represented a $195,228 bearish bet.Here are a handful of the biggest Aurora option trades on Friday: * At 9:33 a.m., a trader bought 1,090 Aurora call options with a $7 strike price expiring on Friday near the ask price at $2. The trade represented a $218,000 bullish bearish bet. * At 11:28 a.m., a trader bought 2,071 Aurora call options with a $10 strike price expiring on Friday at the ask price of 84 cents. The trade represented a $173,964 bullish bet. * At 11:38 a.m., a trader bought 677 Aurora call options with a $6 strike price expiring on Nov. 20 near the ask price at $4.594. The trade represented a $311,013 bullish bet.The three largest Tilray option trades of the morning were all bearish, while the three largest Aurora trades were bullish. Two of the three largest Aurora option trades involved contracts expiring on Friday, suggesting they were day trades rather than medium or longer-term bets on where Aurora’s share price is headed next.Why It’s Important: Even traders who stick exclusively to stocks often monitor option market activity closely for unusually large trades. Given the relative complexity of the options market, large options traders are typically considered to be more sophisticated than the average stock trader.Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there’s no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given the relatively small sizes of the largest Tilray and Aurora trades by institutional standards, they were likely not institutional hedges.Bullish Election Results: It appears increasingly likely that Democrat Joe Biden has won the election, which could be good news for cannabis stocks from a federal level. Regardless of the outcome of the presidential election, cannabis investors scored key legalization victories in five different states. New Jersey, South Dakota, Montana and Arizona all legalized recreational marijuana. South Dakota and Mississippi also legalized medicinal marijuana.At this point, 31% of Americans live in states in which recreational cannabis use is legal. However, victories in so-called “red states” like South Dakota and Mississippi suggest the cannabis issue is becoming more bipartisan in nature.Tilray and Aurora are both Canadian companies, but U.S. federal legalization could represent a massive long-term growth opportunity for both. The way the two stocks are rallying this week may represent a shift in the market’s belief about if and when full US federal marijuana legalization will happen.At the same time, both Aurora and Tilray are extremely heavily shorted stocks, suggesting short covering could also be playing a role in this week’s trading action. As of late outstanding short positions for Aurora and Tilray represented 19.1% and 23.1% of the two stocks’ floats, according to S3 Partners. ACB Chart by TradingView new TradingView.widget( { “width”: 680, “height”: 423, “symbol”: “NYSE:ACB”, “interval”: “D”, “timezone”: “Etc/UTC”, “theme”: “light”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “f1f3f6”, “enable_publishing”: false, “allow_symbol_change”: true, “container_id”: “tradingview_44ad5” } ); Benzinga’s Take: It appears as of Friday morning, the largest option traders are more bullish on Aurora than Tilray. Traders will now wait and watch to see if the cannabis trade loses steam next week or whether the bullish momentum is just getting started.See more from Benzinga * Click here for options trades from Benzinga * Square Earnings Crush Expectations Yet Again, But What’s Next? * Wynn, Caesars Report Latest Brutal Casino Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

,

Contact Us

Please use our Instant Quote form to see if you're pre-qualified for a non-recourse stock loan, or if you have any questions or feedback, please email, call or chat with us.

deals@internationalliquiditypartners.com

+44 20 3994 1588

Headquarters: Hunkins Waterfront Plaza, Charlestown, Nevis

Open 24 hours a day / 7 days a week / 365 days a year

 

 

 

Frequently Asked Questions

What Is Securities-Based Lending?
Securities-based lending, or a stock loan, is the practice of using market investments such as stocks, ETF’s, warrants, bonds, or real estate investment trusts as collateral for a loan.
How much money can I get for my securities?
Borrow up to 80% of the value of your pledged investments giving you the capital you need to expand your business, purchase real estate, or tackle a costly project.
What happens if my securities lose value?
With a non-recourse stock loan, you can walk away from your securities at any time and keep the loan money with no negative credit consequences even if the investments lose value.
Is my information safe with ILP?
We pride ourselves on outstanding service and make client confidentiality our top priority. You can always be absolutely certain your information is safe with us.
How long does it take for the disbursement of funds?
Most of the transactions we process take less than 7 days from application to the disbursement of funds giving you cash quickly when you need it most.
What credit score do I need to qualify?
There are no credit checks or personal guarantees necessary with our services. Your pledged securities are the only collateral required for the loan you receive.

Instant Quote

Please fill out your information to see if you are pre-qualified.

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

International Liquidity Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

International Liquidity Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with International Liquidity Partners, LLC’s internal lending policies. International Liquidity Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Nevis Office

Main Street
Hunkins Waterfront Plaza
Charlestown, Nevis

New York Office

Coming Soon!

Follow Us

Market Coverage