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NBEV Calls Still Hot Despite Pullback

Patrick Martin

Fresh off its best day of 2019 thanks to a big Walmart partnershipNew Age Beverages Corp (NASDAQ:NBEV) stock has been unable to extend those gains today, down 9.6% to trade at $5.96, at last check. Although the catalyst for the pullback is unknown, options traders are swarming for the second straight day.

More specifically, 50,000 NBEV options have changed hands today -- five times the expected intraday amount and volume pacing in the 98th percentile of its annual range. The weekly 4/12 6.50- and 6-strike calls are the most active, with new positions being opened at each. 

Today's pullback may have been in the cards, though, considering New Age Beverages stock's 14-day Relative Strength Index (RSI) closed last night at 68 -- in overbought territory. Prior to yesterday's surge, NBEV had been consolidating between the $5 and $6 levels since late February. Today's pullback appears to be finding a foothold in this region, which is also home to the equity's 50-day moving average, a trendline that alternated between support and resistance over the last 12 months. 

Daily Stock Chart NBEV