Workhorse Stock Hustles Higher on $70 Million Financing Deal

Workhorse just secured millions in financing from a single institutional investor

Digital Content Manager
Jun 30, 2020 at 2:59 PM
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    Workhorse Group Inc (NASDAQ:WKHS) stock is enjoying its seventh straight day of record highs, up 26.4% at $18.34 at last check, after securing $70 million in financing from an institutional investor. The drone-integrated electric vehicle maker said the proceeds will be used for current operating working capital and general corporate purposes. 

    To say Workhorse stock's climb up the charts is impressive would be an understatement. The security is looking to close the month of June with an eye-popping 629.8% win, and boasts a second-quarter lead of almost 900%. Plus, WKHS is looking to string together its fifth consecutive weekly gain -- its longest in nearly five years. 

    This price action is making the options pits go wild. So far, 121,000 calls and 38,000 puts have crossed the tape -- seven times the intraday average, with call volume running in the top percentile of its 12-month range. Most popular by far is the July 17.50 call where positions are being bought to open, followed by the 15 call in the same monthly series. 

    Shorts are still holding on to the auto concern. In fact, short interest rose 3.7% in the last two reporting periods and now represents 18.3% of WKHS' available float. 

    It is also worth noting that the security is deep in oversold territory right now, sporting a 14-day Relative Strength Index (RSI) of 95. This could indicate a short-term breather on the horizon for WKHS. 

     

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