Bulls Circle Red-Hot Penny Stock

Options traders have been focused on calls for a while

Renewable resource stock Plug Power Inc (NASDAQ:PLUG) is having a resurgent start to 2020, up 72.8% year-to-date. PLUG is 3.4% higher today too, last seen at $5.85, and options traders are piling on the penny stock with an emphasis on calls.

At last check, 62,000 calls have changed hands, 10 times the average intraday amount and nearly seven times the number of puts traded. New positions are being opened at the February 6 calls, as well as the weekly 2/28 6-strike call. This indicates options traders see PLUG conquering the $6 level in the next few weeks.

The call activity today surrounding the equity is nothing new. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 38,346 calls in the past two weeks, compared to just 3,573 puts.

PLUG earlier today hit a five-year high of $6.05, and is cruising toward its third straight win. The shares boast a whopping 208% year-over-year gain, and recent support has emerged at their 30-day moving average.

A short squeeze is in play that could power additional gains. Short interest increased by 23.6% in the two most recent reporting periods to 56.34 million shares. This represents a hefty 24.5% of PLUG's total available float, and 4.4 times the average daily trading volume.