Nio Stock Soars On News — And Options Traders Place Big Bets

Nio Inc. NIO was rallying up over 7% Friday after more news on the electric vehicle manufacturer's European expansion and reports of the impending launch of a more cost-effective Nio sub-brand.

The European Whole Vehicle Type Approval license for the Nio’s ES8 will allow the Chinese electric vehicle company to create a foundation for expansion on the continent, while the creation of a cheaper sub-brand would allow Nio to reach a new market of dollar-minded customers.

Nio options traders liked the news and on Friday purchased dozens of call contracts totaling over $1.77 million.

See Also: How to Buy Nio Stock Right Now

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price.

A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The Nio Option Trades: Below is a look at the notable options alerts Friday, courtesy of Benzinga Pro:

At 9:42 a.m., a trader executed a call sweep, at the ask, of 200 Nio options with a strike price of $45 expiring on Sept. 17. The trade represented a $97,000 bullish bet for which the trader paid $4.85 per option contract.

At 10:28 a.m., a trader executed a call sweep, near the ask, of 2,420 Nio options with a strike price of $49 expiring on June 25. The trade represented a $133,100 bullish bet for which the trader paid 55 cents per option contract.

At 10:42 a.m., a trader executed a call sweep, near the ask, of 274 Nio options with a strike price of $50 expiring on Aug. 20. The trade represented a $82,200 bullish bet for which the trader paid $3 per option contract.

At 10:46 a.m., a trader executed a call sweep, at the ask, of 2,683 Nio options with a strike price of $49 expiring on June 25. The trade represented a $169,029 bullish bet for which the trader paid 63 cents per option contract.

At 10:46 a.m., a trader executed a call sweep, above the ask, of 476 Nio options with a strike price of $45 expiring on July 16. The trade represented a $140,896 bullish bet for which the trader paid $2.96 per option contract.

At 11:15 a.m., a trader executed a call sweep, near the ask, of 420 Nio options with a strike price of $47 expiring on June 25. The trade represented a $50,400 bullish bet for which the trader paid $1.20 per option contract.

At 11:17 a.m., a trader executed a call sweep, near the ask, of 400 Nio options with a strike price of $43 expiring on June 18. The trade represented a $108,000 bullish bet for which the trader paid $2.70 per option contract.

At 11:20 a.m., a trader executed a call sweep, near the ask, of 200 Nio options with a strike price of $45 expiring on July 16. The trade represented a $70,000 bullish bet for which the trader paid $3.50 per option contract.

At 12:25 p.m., a trader executed a call sweep, near the ask, of 354 Nio options with a strike price of $65 expiring on Dec. 17. The trade represented a $113,280 bullish bet for which the trader paid $3.20 per option contract.

At 12:35 p.m., a trader executed a call sweep, near the ask, of 1,669 Nio options with a strike price of $43 expiring on June 18. The trade represented a $534,080 bullish bet for which the trader paid $3.20 per option contract.

At 12:38 p.m., a trader executed a call sweep, near the ask, of 354 Nio options with a strike price of $60 expiring on Dec. 17. The trade represented a $149,388 bullish bet for which the trader paid $4.22 per option contract.

At 1:14 p.m., a trader executed a call sweep, near the ask, of 200 Nio options with a strike price of $40 expiring on June 18. The trade represented a $123,000 bullish bet for which the trader paid $6.15 per option contract.

NIO Price Action: Nio was trading up 6.39% at $45.48 at last check. 

Photo courtesy of Nio.