MMR

Chinese Car Stock on Track for Best Day Since July 2014

SNAP picked up yet another bear note today

Managing Editor
Jan 9, 2019 at 2:37 PM
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Stocks are cruising higher today, enjoying solid gains amid U.S China trade optimism. Among stocks making notable moves today, Kandi Technologies Group Inc (NASDAQ:KNDI) and computer hardware issue Diebold Nixdorf Inc (NYSE:DBD) are higher, while Snapchat parent Snap Inc (NYSE:SNAP) is lower. Below, we'll take a look at the news moving the shares of KNDI, DBD, and SNAP.

KNDI Surges on Electric Vehicle Project Approval

Earlier today, Kandi Technologies received approval from the Jiangsu Development & Reform Commission for its electric vehicle project. In response, KNDI stock is up 24.8% to trade at $5.53 -- one of the top stocks on the Nasdaq today, and on track for its best day since July 2014. Kandi shares bottomed at $3.53 back on Dec. 24, but thanks to today's rally, are set to slice through their formerly resistant 160- and 200-day moving averages. 

In the options pits, speculators are scooping up KNDI calls. Already today, about 3,400 calls have changed hands -- nine times the average intraday pace, and more than three times the number of puts exchanged. Today's call volume is more than KNDI has seen during the entire past two weeks, with just 2,460 calls bought to open at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just 14 puts.

Analyst Upgrades DBD, Foresees Uptick in ATM Shipments

Near the top of the New York Stock Exchange (NYSE) today is Diebold Nixdorf, up 27.7% to trade at $3.60, after D.A. Davidson upgraded the ATM maker to "buy" from "neutral." The analyst in coverage expects an uptick in unit shipments for 2019. This is pacing to be DBD's best day since March 2008, although the rally appears to have lost steam at the 80-day moving average.

The equity is still staring at a 79% one-year deficit, so it's no surprise to see the stock heavily shorted. The 18.32 million shares sold short represents more than one quarter of DBD's total available float, and nearly 11 times the average daily trading volume. 

Jefferies PT Cut Halts SNAP Rally     

At last check, Snap stock was down 2.6% to trade at $6.23, after Jefferies trimmed its price target to $7 from $8 amid a murky global advertising outlook for 2019 and 2020. On Monday, SNAP closed above its descending 50-day moving average for the first time since August, and the shares are attempting to stay north of this trendline today. 

It's a prime time to buy premium on the equity's near-term options. SNAP's Schaeffer's Volatility Index (SVI) of 56% ranks in the 14th annual percentile, meaning short-term options are relatively cheap, from a volatility perspective.

Further, Snap stock's Schaeffer's Volatility Scorecard (SVS) sits at a lofty 95 out of a possible 100, meaning the security has handily exceeded options traders' volatility expectations in the past year -- a boon for would-be premium buyers.

 

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