NKLA had a nice long test run of one of its trucks in California this month. It signed a deal
for a 10-year hydrogen refueling. Not a big deal, but may be the first company to sell fuel
along with its vehicles and get government subsidies along the way. The days of doing photo
shoots of a prototype truck rolling downhill are clearly in the past. While alwys speculative,
NKLA is getting more search hits on Bezinga and Zacks suggesting there is trader interest and
maybe even some investors.
On the 120 minute chart, NKLA has ascended about 25% in the past week. It is approaching
the intermediate and longer-term anchored mean VWAP lines in black. It is there that volalility
and volume are expected to be the highest. This is 0.84 to 0.89. In this zone, institutional
traders may take or exit positions. The upper end of the high volume area is at 0.90.
I will take a trade here expecting price to go about 13% higher to 0.88. There it will either
continue the VWAP band breakout or be rejected from that resistance level. The RSI and MACD
indicators show bullish momentum to validate the long trade idea. An additional
factor is whether a short squeeze could ensue. In the near term from now until March, the put
to call ratio is 0.05 to 0.25 making for very few near-term put options. However, in the
April monthly the overall put-to-call ratio is 3.5. This suggests an expectation of a good rise
rise in the next 1-2 months and then a correction or breakdown at 3 months. In July the ratio
falls to 0.05 at least for the time being. If a short squeeze does get set up, put positions
in April will be liquidated in short order and the buying of call options to cover those puts
may accelerate the trend up.
Overall, my target is 0.88 while the stop loss is 0.73 under the evolving POC line of the volume
profile. Since my call options printed a 60% profit for the day, I will add to the position
to capture more of the expected move. ( $1.00 Strike 2/9 expiration currently $2.00 per
contract- no stop loss total loss vs expected gain 250%+)
for a 10-year hydrogen refueling. Not a big deal, but may be the first company to sell fuel
along with its vehicles and get government subsidies along the way. The days of doing photo
shoots of a prototype truck rolling downhill are clearly in the past. While alwys speculative,
NKLA is getting more search hits on Bezinga and Zacks suggesting there is trader interest and
maybe even some investors.
On the 120 minute chart, NKLA has ascended about 25% in the past week. It is approaching
the intermediate and longer-term anchored mean VWAP lines in black. It is there that volalility
and volume are expected to be the highest. This is 0.84 to 0.89. In this zone, institutional
traders may take or exit positions. The upper end of the high volume area is at 0.90.
I will take a trade here expecting price to go about 13% higher to 0.88. There it will either
continue the VWAP band breakout or be rejected from that resistance level. The RSI and MACD
indicators show bullish momentum to validate the long trade idea. An additional
factor is whether a short squeeze could ensue. In the near term from now until March, the put
to call ratio is 0.05 to 0.25 making for very few near-term put options. However, in the
April monthly the overall put-to-call ratio is 3.5. This suggests an expectation of a good rise
rise in the next 1-2 months and then a correction or breakdown at 3 months. In July the ratio
falls to 0.05 at least for the time being. If a short squeeze does get set up, put positions
in April will be liquidated in short order and the buying of call options to cover those puts
may accelerate the trend up.
Overall, my target is 0.88 while the stop loss is 0.73 under the evolving POC line of the volume
profile. Since my call options printed a 60% profit for the day, I will add to the position
to capture more of the expected move. ( $1.00 Strike 2/9 expiration currently $2.00 per
contract- no stop loss total loss vs expected gain 250%+)
Trade active:
Call options are down 50%- holding for another leg up.
Trade active:
Up and down in an ascending channel. Typical volatility looking for a exit at the top
of the channel to take off a piece of the position.
of the channel to take off a piece of the position.
Trade active:
Added to the position on the dip with the general market drop this morning.