Options Traders Blast Nio Stock Despite Quarterly Losses

Options volume is running at triple the volume that's typically seen at this point

Digital Content Manager
Sep 7, 2022 at 10:21 AM
facebook twitter linkedin

Nio Inc (NYSE:NIO) is up 1.8% to trade at $17.42 this morning, despite the electric vehicle (EV) concern announcing second-quarter losses of 20 cents per share on $1.54 billion in revenue, the former wider than last year's results and the latter exceeding analyst expectations. What's more, the company said it delivered 25,059 vehicles, beating its own guidance but down 2.8% from the previous quarter, with deliveries taking a hit in April and May amid Covid-19 lockdowns in China.

Analysts are fiercely optimistic towards NIO, with eight of the nine in question carrying a "strong buy" rating, while only one said "hold." Echoing this, the 12-month consensus target price of $35.15 is a whopping 93.5% premium to the security's current levels.

That's a lot of optimism for a stock down 42.2% year-to-date. Digging deeper, the 160-day moving average has been pressuring shares lower since December. The $22 level rejected the equity's latest rally, after emerging as an area of resistance in July.

The options pits are bursting with activity this morning, with 49,000 calls and 24,000 puts across the tape so far, volume that's triple the amount normally seen at this point. Most popular is the 9/9 18-strike call, followed by the 17-strike put in the same weekly series, with new positions being bought to open at the latter.

Short-term options traders have been more bullish than usual. Nio stock's Schaeffer's put/call volume ratio (SOIR) sits at 0.59 and ranks in the 10th percentile of the last 12 months, meaning these traders have rarely been more call-biased.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners