Celsius Holdings Inc (NASDAQ:CELH) stock is trading at 52-week highs today, after PepsiCo (PEP) increased its stake in the energy drink name through a $585 million deal. At last glance, CELH was up 5.1% to trade at $62.72, earlier hitting a peak of $63.49.
Celsius stock rallied this month after an Aug. 7 post-earnings bull gap of 17.3%, and is currently up 140% since the start of the year. At the close today, the shares are on track to capture their fourth-straight weekly win.
Options bulls are chiming in after the news, with 23,000 CELH calls exchanged so far -- double the intraday average volume -- in comparison to 7,426 puts. The weekly 8/29 64-strike call is the most popular, with new positions being bought to open there.
These options are attractively priced at the moment, too. CELH's Schaeffer's Volatility Index (SVI) of 42% ranks in the low 2nd percentile of its annual range, meaning options traders are pricing in low volatility expectations.
Notably, the stock still has plenty of short covering potential. Short interest represents a large 12.5% of the stock's available float, three days' worth of pent-up buying power.
