Decoding NIO's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on NIO NIO.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NIO, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 10 uncommon options trades for NIO.

This isn't normal.

The overall sentiment of these big-money traders is split between 70% bullish and 30%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $1,282,892, and 4 are calls, for a total amount of $145,509.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $2.5 and $25.0 for NIO, spanning the last three months.

Insights into Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for NIO's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across NIO's significant trades, within a strike price range of $2.5 to $25.0, over the past month.

NIO Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About NIO

Nio is a leading electric vehicle maker, targeting the premium segment. Founded in November 2014, Nio designs, develops, jointly manufactures, and sells premium smart electric vehicles. The company differentiates itself through continuous technological breakthroughs and innovations such as battery swapping and autonomous driving technologies. Nio launched its first model, its ES8 seven-seater electric SUV, in December 2017, and began deliveries in June 2018. Its current model portfolio includes midsize to large sedans and SUVs. It sold over 160,000 EVs in 2023, accounting for about 2% of the China passenger new energy vehicle market.

After a thorough review of the options trading surrounding NIO, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is NIO Standing Right Now?

• With a trading volume of 18,533,961, the price of NIO is up by 3.07%, reaching $4.03.
• Current RSI values indicate that the stock is may be approaching oversold.
• Next earnings report is scheduled for 50 days from now.

Expert Opinions on NIO

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $4.5.

• An analyst from Barclays downgraded its action to Underweight with a price target of $4.
• Reflecting concerns, an analyst from Macquarie lowers its rating to Neutral with a new price target of $5.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for NIO, Benzinga Pro gives you real-time options trades alerts.