Shares of Planet Labs Pbc (PL) surged 6.86% intraday on Tuesday, potentially driven by bullish sentiment among options traders.
According to the latest trading data, call option volume in PL stock spiked to 12,852 contracts, 3 times higher than the normal level. The implied volatility, which reflects the expected price swings in the underlying stock, also increased by nearly 2 points to 100.15%.
The elevated call option activity suggests that traders are betting on further upside in PL shares. Increased demand for call options, which grant the right to buy the underlying stock at a predetermined price, can sometimes translate into buying pressure in the stock itself.