Options Traders Continue to Target Nio Stock

Nio stock is down just over 26% in 2021

Assistant Editor
Oct 11, 2021 at 2:42 PM
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Below is a list of 20 stocks that have attracted the highest weekly options volume in the last 10 trading days, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name that stands out on this list is Nio Inc (NYSE:NIO). The equity is no stranger to White's list, and given the ample interest in electric vehicle stocks as a whole, it may be a good time to revisit Nio stock. 

According to White's data, in the past 10 days, NIO's options pits have seen 563,834 calls and 216,806 puts exchanged. The most popular contract during that two-week period was the weekly 10/8 36-strike call, followed by the October 35 call.   

MAO Chart Oct 11

Nio stock was last seen moving slightly higher, up 0.3% at $35.92. On the charts, the China-based Tesla (TSLA) competitor has struggled since an early August bear gap forced the shares beneath the $40 level. NIO went on to find a temporary floor at the $33 area, with newfound resistance from the 320-day moving average -- a historically supportive trendline that has pressured the shares since mid September. Year-to-date, Nio stock is down 26.2%.

NIO Chart October 11

Now could be a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per NIO's Schaeffer's Volatility Index (SVI) of 55%, which sits in the 10th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 93 out of 100, meaning SYF has exceeded option traders' volatility expectations during the past year.

It's also worth noting that analysts are extremely bullish on the equity. In fact, all six in coverage sport a "strong buy" or "buy" rating. Plus, the 12-month consensus price target of $58.47 is a 62.4% premium to current level, suggesting Nio stock is overdue for a round of bull notes. 

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