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Nio Stock Draws Attention With Monthly Delivery Data

Nio options can be had for a bargain at the moment

Deputy Editor
Oct 1, 2021 at 10:36 AM
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China-based electric vehicle maker Nio Inc (NYSE:NIO) is in the spotlight this morning, after the company tallied up a record high number of monthly deliveries. Specifically, Nio reported 10,628 global deliveries in September, which represents a 126% year-over-year increase. At last check, the stock was up just 0.5% to trade at $35.81.

September, overall, proved to be a dismal month for Nio stock on the charts. The security fell below previous long-term support at the 320-day moving average, notching eight closes below the trendline in nine sessions. Slightly longer term, NIO shed 28.7% over the last three months, and remains down 26.2% year-to-date.   

Options traders have been optimistic on NIO, per the stock's 10-day call/put volume ratio of 3.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 75th percentile of its annual range, meaning these calls are being picked up at a relatively quicker-than-usual clip. 

Echoing this, Nio stock's Schaeffer's put/call open interest ratio (SOIR) of 0.75 sits in the low 14th percentile of all other readings from the past year. In other words, short-term options traders haven't been more call-biased recently.

Now looks like an ideal time to join these options traders, seeing as these premiums can be had at a relative bargain. The stock's Schaeffer's Volatility Index (SVI) of 55% sits below all but 10% of annual readings, implying options traders are pricing in relatively low volatility expectations for Nio stock at the moment. What's more, NIO's Schaeffer's Volatility Scorecard (SVS) sits at 94 (out of 100), suggesting the stock has usually exceeded option traders' volatility expectations in the past year.

 

 

 

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