NIO Stock Soars As China Unveils Business Boosting Measures, Options Traders Foresee More Gains

NIO Inc. NIO shares traded higher on Monday alongside several Chinese names after China announced broad measures aimed at optimizing its business environment.

On CNBC’s "Options Action,"  Mike Khouw of Optimize Advisors said NIO traded more than 2x its average daily options volume on Monday, with calls outpacing puts by more than three to one. NIO was the sixth-busiest single stocks option on Monday.

Don’t forget to check out our premarket coverage here

There were buyers of 9,000 of the July 28 weekly 28-calls at an average price of around 64 cents per contract, Khouw said.

Traders expect NIO’s stock to move higher through the end of the week.

China's National Development and Reform Commission (NDRC) released a 17-point statement on Monday which included pledges to support private investment in transportation, clean energy, new infrastructure, advanced manufacturing and real estate.

Price Action: NIO shares jumped 10.9% to close at $11.73 on Monday, and added 3.9% in Tuesday's premarket trading session.

Check This Out: Microsoft Likely To Report Higher Quarterly Earnings; Here's A Look At Recent Price Target Changes By The Most Accurate Analysts