Blockchain buzz has taken Wall Street by storm in recent months, with IT issue Ameri Holdings Inc (NASDAQ:AMRH) and photography icon Eastman Kodak Company (NYSE:KODK) the latest stocks rallying on new cryptocurrency ventures. Here's a closer look at the news that's boosting shares of AMRH and KODK today.
Ameri Holdings stock has nearly tripled out of the gate -- last seen up 166.4% at $9.11 after being halted for volatility. The New Jersey-based company said it will include blockchain solutions in its services, and will seek out strategic investments in blockchain technology firms. After pricing its initial public offering (IPO) price at $4.12 in mid-November, AMRH stock went on to hit a record low of $1.27. Today, though, the shares made their first foray into double-digit territory, topping out at an all-time peak of $13.50.
Late Tuesday, Eastman Kodak said it had developed a new cryptocurrency for photographers, called "KODAKcoin," which uses blockchain -- the technology behind bitcoin. The news sent the shares soaring 119.4%, and today, KODK stock is up another 72.6% to trade at $11.74 and on track to close north of its 200-day moving average for the first time since last January.
The volatile price action has sparked a surge of activity in KODK's options pits, too, with total options volume topping out at a 12-month high on Tuesday. Today, volume is running at 166 times the expected intraday pace, with 20,200 calls -- pacing for the 100th annual percentile -- and 14,578 puts, a new 12-month high, traded so far.
Most active is the January 2018 15-strike call, where buyers appear to be betting on more gains through front-month options expiration at next Friday's close. Put buyers are likely targeting the January 2018 5 strike, betting on a quick reversal. However, this could also be indicative of shareholders initiating options hedges with the deep out-of-the-money puts.