Kandi Technologies Group, Inc. (KNDI) Drop Sparks a Run on Options

Kandi Technologies Group Inc (KNDI) is exploring new lows, but some option traders remain hopeful

May 14, 2015 at 11:34 AM
facebook twitter linkedin

Electric vehicle maker Kandi Technologies Group Inc (NASDAQ:KNDI) has plummeted 15.9% to $8.88, and earlier hit $8.70 -- its lowest level since late 2013 -- though the catalyst is unclear. The Twittersphere is chatting about possible insider selling, and some are reporting issues with the KNDI website. Whatever the cause, KNDI options are flying off the shelves at a rapid-fire rate.

The stock's 30-day at-the-money implied volatility popped 14.6% to 65.3%, and KNDI options are trading at 13 times the average intraday clip. Most popular by a mile is the stock's May 9.50 call, which it appears traders are buying to open to gamble on a rebound north of $9.50 by tomorrow's close, when front-month options expire.

Prior to today, option traders were upping the bearish ante on KNDI. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 0.58 stands higher than 82% of all other readings from the past year.

Meanwhile, short interest accounts for roughly 20% of Kandi Technologies Group Inc's (NASDAQ:KNDI) total available float. In fact, it would take nearly 13 sessions to repurchase these pessimistic positions, at KNDI's average pace of trading. However, in light of the stock's bear gap, it's been relegated to the short-sale restricted list.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners