NIO, or "Chinese Tesla" as I call it is a Chinese Electric Vehicle stock. The company also provides mobile charging stations throughout China which is a nice hedge considering the current gluten of Chinese electric vehicle startups abound.
From a technical:
TA is somewhat limited on this stock due to it's young age and lack of a history, other than the falling price.
The falling price formed a descending wedge, so we bought some NIO at $4.52 and some $5.00 calls. Sold those calls at a nice profit last week.
We then bought some $4.50 and $5 puts expiring this week. (They were super cheap).
Buying puts may have been the wrong call. From a TA standpoint, the stock looks strong for more bullish action based on the 1 through 4 hour but becomes bearish on the short term time frame (under 1 hour).
For now, my bias is bearish but if the price of NIO breaks the high of last week .
4-29-19 -- the price shot to $5.05 this morning before settling at $5.
If the price breaks last week's high of $5.15, I may buy some $5.50 calls
From a technical:
TA is somewhat limited on this stock due to it's young age and lack of a history, other than the falling price.
The falling price formed a descending wedge, so we bought some NIO at $4.52 and some $5.00 calls. Sold those calls at a nice profit last week.
We then bought some $4.50 and $5 puts expiring this week. (They were super cheap).
Buying puts may have been the wrong call. From a TA standpoint, the stock looks strong for more bullish action based on the 1 through 4 hour but becomes bearish on the short term time frame (under 1 hour).
For now, my bias is bearish but if the price of NIO breaks the high of last week .
4-29-19 -- the price shot to $5.05 this morning before settling at $5.
If the price breaks last week's high of $5.15, I may buy some $5.50 calls