NKLA is trying to make an all time low. Fundamentally, the last earnings were okay. Some members of
the board are retiring soon. Technically, the relative selling volume is much higher than the moving 50 day average.
The zero lag MACD shows no bullish divergence suggesting that that there is no impending reversal. The
indicators K/D lines have not crossed indicating the moving average compression / convergence are continuing.
Price has fallen outside the Bollinger Bands. NKLA finished out the week with some engulfing bear candles
on the news of instability on its governing board. This is unlike the candlestick pattern when NKLA did minor
pullbacks on the downtrend foreseen by small body red candles to setup up the minor pullbacks.
All in all, as a penny stock, this is probably not shortable but it does have put options for $23.00 per contract
for the $1.00 strike DTE 5 with a spread of 5% with high volatility and open interest ( reasonable liquidity) I will
take a put option trade of several contracts targeting 50% return and setting a stop loss at 10%.
I have always found it helpful to have some naked puts in the portfolio so when the general market of SPY / QQQ reverses t
o the downside they can help the put options capture some profit in the synergy.
Trade active
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Call options are up 40% early in the trade. I have cashed out 1/2 of them and bought 50 more contracts at the 4/28 expiration ( strike $1.00) to realize part of the profits and reinvest them rolling into the next DTE.
Thanks for that. I'm cautiously optimistic about NKLA despite delisting possibility. The company acquired a battery producing capability and building infrastructure for its trucks to operate. Right now it's going though rough times but I believe they will overcome the difficulties and that future is bright. Tesla was also trading below $1 in the past. With risk to reward ratio in mind I started nibbling on Friday and will continue throughout next week with stop loss at 0.70
Chartguru1
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@timefreezersphototw, yes. Also job cuts announcement will double price. Cleansing of 3 useless board members a start. And Dept of Energy news will have it 5x as the hydrogen hub just as important as the truck itself. Feeding frenzy down here telling of imminent news. Fridays volume said it all. Retail guy either long gone or down a ton. Dipping here worth it
needfspeed2
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@Chartguru1, I hold some share, I thought was a good entry level , but now I feel super risky under 1 dollar , not enough cash , and not selling products... also Tesla provided better battery for trucks .. honestly this is now gambling
AwesomeAvani
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@needfspeed2, I made some $ on the call options but now the rest are underwater. I bought puts to hedge and may close all options once they offset on another with no net profit. The cannot be shorted. Honestly I was hoping for a short squeeze on those holding puts but the fire did not ignite. I am in Phoenix. the plant looks like " Death Valley" while down the road at the LCID plant, things loot fairly active. Time will tell. A Tesla battery started on fire here after a collosion. Took 3 tanker fire trucks to put out the fire and then the two truck refused to tow it to a junk yard citing the hazard threat. In the meanwhile, gas for low octane has crossed the $ 5 / ga. threshold. Things are a messy. I only trade stock intraday and only hold overnight for options.
Chartguru1
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@needfspeed2, every company is a gamble. Wall St is 100% gambling. DOE and some white knight will have shocking results.