EV Stock Surges on Repurchase Right Offer Completion

Analysts are overwhelmingly bullish towards NIO

Digital Content Manager
Jan 31, 2022 at 3:10 PM
facebook twitter linkedin


Chinese electric vehicle (EV) concern Nio Inc (NYSE:NIO) is surging today, last seen up 17.3% to trade at $24.51, after the company said it completed the repurchase right offer for its 4.50% convertible senior notes, due in 2024. The last time we checked on the security, it had just popped up on a list of names attracting the highest weekly options volume.

Options traders have remained much more call-biased than usual. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.74, which sits higher than just 15% of readings from the past year. 

The brokerage bunch echoes that optimism, with all but one of the seven analysts in coverage calling NIO a "strong buy." Plus, the security's 12-month consensus target price of $57.17 is a 133.3% premium to current levels.

Digging deeper, NIO is looking to recover from a Jan. 28, two-year low of $19.91, after breaching recent support at the $28 level. The 40-day moving average has kept a tight lid on the stock since early December, though, and quarter-to-date shares are down 22.7%.

NIO 40 Day

 

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! 

 

300x250 - Banner 3 - v1