NKLA Extends Losses After Partnership Termination

The equity sports attractively priced options at the moment

Deputy Editor
Dec 24, 2020 at 10:12 AM
facebook X logo linkedin

The shares of Nikola Corporation (NASDAQ:NKLA) are extending yesterday's plunge to their pre-pandemic lows, after the company and Republic Services (RSG) terminated a partnership to develop electric garbage trucks. According to a letter from Nikola's CEO Mark Russell, the move was "the right decision for both companies given the recourses and investments required." As a result, NKLA was last seen down 2.7% to trade at $14.62 this morning.

Things were looking promising for the equity near the end of November when shares were staging a climb back toward their summer highs, which culminated in a three-month peak of $37.95. However, a Nov. 30 bear gap lead Nikola stock below the $20 which has joined the 10-day moving average as a dual ceiling for the equity. While the security is down 26.5% this quarter, it's still up 45.8% in 2020.

Over the last 10 days, calls and puts have been trading at a relatively similar pace. In fact, 48,199 calls and 41,335 puts have crossed the tape in the last two weeks. That being said, traders looking to speculate on Nikola stock's near-term trajectory should consider options. The security's Schaeffer's Volatility Index (SVI) of 111% sits in the 10th percentile of its annual range, suggesting short-term options are pricing in low volatility expectations. In other words, the stock's near-term options are attractively priced at the moment.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI