Aggressive Options Activity Warrants a Close Look at Planet Labs (PL)

When a hot small-capitalization play like Planet Labs (PL) encounters a double-digit percentage rise over a single session, it’s typically a good time to exit. Sure, the aerospace and defense specialist – which focuses on providing global, daily satellite imagery and geospatial solutions – could continue to move higher. However, skepticism always looms over such entities, subjecting PL stock to significant volatility risks.

On Monday, shares screamed higher by 12.7%, eventually closing at $2.84. But perhaps not surprisingly, the afterhours session was more muted, with the equity losing slightly more than 1%. It’s not that PL stock is incapable of robust moves northward. However, such resoundingly optimistic sessions usually lead to devastating corrections. Therefore, it’s natural for speculators to be cagey regarding the opportunity.