Plug Power Stock Bounces on Strong Revenue Projection

The hydrogen fuel cell firm expects to generate $6 billion in revenue by 2027

Shares of Plug Power Inc (NASDAQ:PLUG) are 4.3% higher at $7.47 at last glance, slightly down from their more than 11% premarket lead, after the company projected a massive jump in revenue. According to a regulatory filing, the hydrogen fuel cell firm said it expects revenue to rise to $6 billion by 2027, and could generate $20 billion in revenue by 2030. 

Today’s options activity is running wild. So far, 45,000 calls and 15,000 puts have already crossed the tape, which is four times the volume that’s typically seen at this point. Positions are opening at the most popular weekly 10/13 8-strike call  followed by the 7-strike put in that series.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Plug Power stock’s 10-day call/put volume ratio of 3.63 stands higher than 89% of readings from the past 12 months, suggesting options traders have been optimistic. 

It’s worth noting the security’s Schaeffer’s Volatility Scorecard (SVS) of 95 out of 100 indicates it has exceeded option traders’ volatility expectations during the past year — a boon for buyers. 

On the charts, the $8 level has acted as a ceiling since mid-September. Now bouncing from more than three-year lows, PLUG just reclaimed support form its 20-day moving average, though it’s more than 39% lower in 2023.

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