Weed Stock to Test Technical Support After CEO Shocker

Linton told CNBC he was fired

Canopy Growth Corp (NYSE:CGC) stock is down 3.5% in electronic trading, after the cannabis company said Bruce Linton is exiting his roles as co-CEO and board member, effective immediately. In an interview with CNBC, Linton said he was "terminated," as CGC hands over 100% of the top responsibilities to Mark Zekulin, who had been serving in the co-CEO spot.

Should today's pre-market price action pan out, CGC stock could be testing support in the $38.25 region -- a familiar floor that coincides with a 50% Fibonacci retracement of the equity's rally from late December through early February. And while the shares have pulled back since their April 30 six-month high of $52.74, they remain up 49.2% year-to-date, through last night's close at $40.08.

Options traders are betting on a quick bounce for the weed stock. The July 50 call has seen the biggest increase in open interest over the last 10 days with 6,444 contracts added, and data from the major options exchanges confirms significant buy-to-open activity here. In other words, bulls are targeting a breakout above the round $50 mark by expiration at the close on Friday, July 19.

It's certainly an attractive time to purchase premium on CGC. The stock's Schaeffer's Volatility Index (SVI) of 37% arrives lower than 99% of all comparable readings taken over the past year, meaning short-term options are pricing in relatively low volatility expectations at the moment.