Aurora Cannabis Options Hot as Weed Stock Rallies

Marijuana stocks are getting a lift from a recent bullish analyst note

The shares of Aurora Cannabis Inc (NYSE:ACB) are up 10.8% to trade at $6.75 today, as several weed stocks enjoy sector tailwinds from the Canaccord Genuity bull note yesterday. The stock is now up 14% since Monday's close, and the surge has sparked a flurry of options trading for ACB.

At last check, more than 6,400 options have been traded, dwarfing yesterday's record peak of 2,142 contracts traded in a single session. Calls are more popular than puts, with 4,853 of the former and 1,555 of the latter on the tape.

The most popular ACB option today is the June 10 call, where new positions are being opened. According to Trade-Alert, activity at this strike appears to be of the sell-to-open variety, indicating options traders see the $10 level serving as a long-term ceiling for the cannabis producer.

On the charts, shares of the Canada-based firm opened at at $7.45 on Oct. 23 -- their first day of trading on the New York Stock Exchange (NYSE). ACB raced to a record high of $8.62 that day, before swinging to its all-time low of $5.39 in Tuesday's trading.