NIO's Options: A Look at What the Big Money is Thinking

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 11 uncommon options trades for NIO.

This isn't normal.

The overall sentiment of these big-money traders is split between 63% bullish and 36%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $1,109,954, and 7 are calls, for a total amount of $538,156.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $2.0 to $25.0 for NIO over the recent three months.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in NIO's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to NIO's substantial trades, within a strike price spectrum from $2.0 to $25.0 over the preceding 30 days.

NIO Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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.

NIO's Current Market Status

• With a trading volume of 38,605,480, the price of NIO is down by -2.61%, reaching $4.47.
• Current RSI values indicate that the stock is may be oversold.
• Next earnings report is scheduled for 57 days from now.

What Analysts Are Saying About NIO

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $5.6.

• Reflecting concerns, an analyst from Barclays lowers its rating to Underweight with a new price target of $4.
• An analyst from UBS has decided to maintain their Neutral rating on NIO, which currently sits at a price target of $7.

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.