The U.S.-listed shares of Canopy Growth Corp. (WEED.T) rose 0.7% in morning trading Thursday, ahead of the Canada-based cannabis company's fiscal fourth-quarter results (ETFMG Alternative Harvest ETF (MJ) has advanced 30.2% and the S&P 500 has gained 17.6%.) due out after the close. Canopy has reported wider than expected losses the past four quarters, while revenue beat expectations in the third quarter after missing the previous three quarters. An options strategy known as a straddle, a pure volatility play involving the simultaneous purchase of bullish and bearish options at at-the-money stock prices and expiring at Friday's close, are priced for the stock to move about 7.0% in either direction on Friday. That compares with an average 13.8% one-day post-earnings move the past 4 quarters. But that average includes a 3.1% gain after third-quarter results, preceded by a 10.9% decline, a 30.4% surge and a 10.8% fall after the previous three quarters. Canopy's stock has rallied 60.1% year to date, while the
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 20, 2019 11:05 ET (15:05 GMT)
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