27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Shares of Nasdaq-listed cannabis companies such as Tilray Inc. (NASDAQ:TLRY), Sundial Growers Inc. (NASDAQ:SNDL) and Aurora Cannabis Inc. (NASDAQ:ACB) have emerged as favorites of retail investors this year and continue to trend on Reddit’s r/WallStreetBets forum, which has 10.6 million members and is known for short squeezes.
Here’s a comparative take on which retail-favorite cannabis stock gave the best returns in the first half of 2021.
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Year-To-Date Returns: Tilray’s stock has returned year-to-date gains of 118.9%, while Sundial’s year-to-date returns stand at 100.2%. Aurora Cannabis stock’s year-to-date returns of 8.78% pale in comparison to both.
Shares of Tilray, Sundial Growers and Aurora Cannabis — all Reddit favorites — peaked in February amid heightened retail interest, but have fallen notably since then.
Tilray shares hit a new 52-week high of $67.00 and Aurora Cannabis touched a high of $18.98 on Feb. 10, while Sundial shares reached a 52-week high of $3.96 a day later.
Nevertheless, optimism that cannabis reforms will make it easier for the companies to do business has led to a renewed retail-investor interest in these stocks.
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See Also: Aurora Cannabis Rolls Out Three THC-Powerful Proprietary Cultivars Under San Rafael '71 Brand
Capital Raising: Taking advantage of the investor interest, Sundial said in January it is raising $100 million through a sale of stock and warrants.
Aurora Cannabis said in May it is seeking to raise $300 million by selling its commons shares through the at-the-market offering, noting that the funds will provide it with “maximum flexibility” to pursue acquisition opportunities.
Earlier this week, Tilray CEO Irwin Simon called on shareholders to support a proposal that will allow the company to increase the number of authorized shares of its common stock and enable it to make acquisitions for growth. Tilray closed its merger with peer Aphria in May and now has a market capitalization of more than $8 billion.
Retail investors behave differently than institutional investors, and this offers a number of opportunities for a company like Sundial, the company's CEO Zach George said at the Benzinga Cannabis Conference in early June.
Price Action: Tilray shares closed 1.2% higher in Wednesday’s trading at $18.08, while Sundial Growers closed 0.1% lower at $0.9490 and Aurora Cannabis shares closed almost 0.6% lower at $9.04.
Read Next: Tilray Has Beer: Craft Cannabis Brew Coming Soon To US Bars and Stores
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.