Tilray rallies on a wave of bullish options activity

Canadian cannabis and booze company Tilray is rallying amid a spike in call options that appears to be putting upward pressure on the heavily shorted stock.

As of 1:36 pm ET, 102,472 calls were sold on Wednesday, compared to 68,100 yesterday and the 20-day average of 23,948. Tilray is up more than 15% on Wednesday and more than 66% in the past month on little news about any changes in the company’s operations.

Tilray’s short interest as a percentage of float sits at more than 20%. The rise in bullish options may be pushing some short sellers to close their positions, pushing up the price.

The recent rally has added about $0.25 to Tilray’s stock price, which remains down more than 50% this year. The company has struggled to grow its revenue as its cannabis sales shrink, which it has had to make up by building a booze business.