Recommended Nio Options Trade.....
** NIO OPTIONS TRADE: Buy NIO
AUG 20 2021 35.000 CALLS at approximately $3.15.
Nio Options Trade Call
Last Friday, May 28, 2021, members Nio Options Trade
climbed as high as $7.00 – a potential
profit of 122%.
However, on Tuesday, June 01, 2021, the Nio
Options Trade shot higher hitting $9.20 – a potential profit of 192%.
Why the Jump for the Nio Options Trade
1. NIO's innovative
battery strategy was on display Friday, giving it a decent chance of capturing a
leading position in the emerging EV industry. The company's highly differentiated battery strategy
sets it apart from competitors. The company is in hyper growth mode and is
expected to be free cash flow positive by 2022.
NIO has proven to be a fast-paced, aggressive and innovative company. In
just seven years, NIO established itself as the premium electric SUV OEM in
China, and now it is moving into sedans and expanding into Europe.
In August 2020, NIO announced a potential game changer: its
battery-as-a-service (BaaS) subscription offering.
This offering differentiates NIO from competitors and solves two
strategic issues: driving the mass adoption of EV and improving its competitive
2. Monthly Deliveries Report – NIO said in a statement on Tuesday morning
that it delivered 6,711 vehicles in May, a decline of about 5.5% from April
that was explained by a need to reduce production amid a global shortage of
semiconductors. However, this is an increase of 95.3% year-over-year.
That decline was no surprise, as NIO had warned auto investors in April
that it expected chip-related production disruptions in the second quarter. The
good news -- there was some -- is that NIO reiterated its upbeat guidance for
second-quarter deliveries, as it expects to be able to make up some of the
difference in June. The company still expects to deliver between 21,000 and
22,000 vehicles in the quarter, roughly double its year-ago total.
Given that NIO delivered 13,183 vehicles in April and May, that guidance
implies deliveries of between 7,817 and 8,817 in June, which would be an
increase of between 109% and 136% from June 2020 and a record month for the
To read the “News Release” from Nio CLICK HERE. 3. Citi
Analyst Upgrade -
In a new note on Tuesday, Citi analyst Jeff Chung raised his bank's
rating on NIO's shares to buy, from neutral, while increasing Citi's price
target for NIO to $58.30 from $57.60.
that he now sees China sales of "new energy vehicles," a category
that includes electric vehicles and hybrids, rising more quickly than he had
previously expected. He now expects Chinese consumers to buy 2.52 million new
energy vehicles in 2021 and 7.84 million in 2025, versus the 1.79 million in
2021 and 6.86 million in 2025 he had previously forecast.
specifically, Chung expects the company's order backlogs to increase in the
second quarter, which will in turn "substantially increase" its
revenue and market share in the second half of the year, with new products
driving additional growth in 2022.
Chung's upgrade is a big part of why the stock is up Tuesday.