Nio Faces Bearish Option Position as Stock Tumbles Along With EV Peers
$NIO Inc (NIO.US)$ saw a financial giant take a bearish position on the stock after the European Union announced it's imposing provisional duties on Chinese electric vehicle makers.
Less than a minute after the market opened Friday, a block trade was posted for put optionsgiving the holder the right to sell a total of 104,000 Nio's American depositary shares at $25 by Jan. 17, 2025. The buyer paid a premium of $2.11 million for the trade that was executed at a price of $20.35, closer to the bid price.
The block trade of 1,040 put options represented the total volume for that contract, data compiled by moomoo showed. That's more than 16 times the open interest.
Nio, which faces a 20.8% preliminary tariffs on its EVs, may raise the price of its cars sold in Europe as a result, Reuters reported.
(To see Nio's options chain, click here.)
Shares of Nio and other Chinese EV makers including $XPeng (XPEV.US)$ and $Li Auto (LI.US)$ also fell.
The 7% slump for Nio came after the stock climbed to the highest in almost a month in the previous trading day. Even after the reversal, 12 of 15 technical indicators tracked by moomoo are neutral on the stock. Only one signals that the stock could be oversold and the trend could be turning bullish, while another two are flashing the opposite.
Share your thoughts on Nio below.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
5734Followers
16Following
16KVisitors
Follow
White_Shadow : tons of headwind but a solid company with tons of room to grow, once the Chinese market breaks out of this extended bearverse it's in I think all the major EV players in China will perform well.
103613928 : I see
KenYeong :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
103677010 : thanks
103677010 : thanks
104971369 : Haha
103027647 : sale in Europe very low around 35 for Germany so raise price is ok.china sale above 20k amonh with coming onvo around 30k .so tariff is only very small peanut affect nio sale less than 1%.shortist just give excuse to sell whereas sale in china up 100%every month.with firefly next year maybe 70k a month. so Europe is only less than 0.1%
身骑白马 : good
103463298 : good
104476495 : hi
View more comments...