Xpeng Earnings Sending Options Volume Souring: 3DTE

Kevin Travers wrote a column · May 22, 2024 00:04

$XPeng (XPEV.US)$ shares climbed Tuesday after the firm reported quarterly earnings that showed a narrowed net loss after higher sales. The firm also forecast second quarter deliveries to rise 25-28%, alongside a revenue jump by 48-64%. the stock climbed about 6% by noon, after a morning jump of 17% that sent options contracts for the equity flying.

By options contract volume, the firm was in the top 13 position in the U.S. market with 143K contract trades, ahead of options trades on stocks like $JPMorgan (JPM.US)$. Overall, more than 160k XPEV shares changed hands Tuesday.

Xpeng Earnings Sending Options Volume Souring: 3DTE

One contract, the $10 call for 05/25/2024, Friday expiry saw the highest volume, changing hands 23K times. The contract gives holders the right to buy Xpeng at $10 by Friday, for a current asking cost of 7C/share for 100 shares. The price on the contract shot up 800% Tuesday to about 80C, before returning lower.

The firms overall Put:Call volume, a measure that compares open interest of Put contracts to Call contracts was 64:36 call/put. According to 11 moomoo indicators, the stock appears to have a bearish sentiment today.

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