This Cannabis ETF Is Up 66% In 5 Days, Options Traders Bet It's Going Even Higher

AdvisorShares Pure US Cannabis ETF MSOS rose sharply on Tuesday, extending gains from the previous week.

On CNBC’s "Options Action,"  Mike Khouw of Optimize Advisors said the cannabis ETF traded more than 3.5x its average daily options volume on Tuesday.

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There was a buyer of 2,685 of the December 8-calls at an average price of $1.52 per contract, Khouw mentioned.

Trader sees AdvisorShares Pure US Cannabis ETF trading above $9.52 by December expiration, which is almost 18% higher than its current price.

Cannabis stocks have risen over the past week on news that the Department of Health and Human Services (HHS) proposed reclassifying marijuana to a lower-risk drug category.

Price Action: AdvisorShares Pure US Cannabis ETF surged 18.7% to close at $8.08 on Tuesday, after climbing more than 66% in the prior week.

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