馃浕 NIKOLA: DERIVATIVES TRADING 馃浕
Nikola Corp [NKLA] is a controversial stock that has no earnings and its biggest risk is the possibility of bankruptcy. Even though the SP500 has won since October 2022, but not NKLA, this may have momentum and all the hupe of TSLA, NIO, LCID or RIVN. Surely, it never get back to new hights in the long term, NKLA could have action between ± $0 USD and ± $22.52 USD zone.
The last bottom was at $0.50 USD. The "logic" is to short it at any price below the price when it was listed as SPAC (the risk of bankruptcy is so real). However, as many junk stocks, a short-squeeze might be possible, and the price could rise to ± $11.5 USD. In that sense, an example of trading could be:
- Call (sell): ± $15 USD
- Call (buy): ± $10 USD
- Put (buy): ± $1.5 USD
The big risk was already mentioned. Another risk is the possibility of a gamma-squeeze If the price pierces the maximum price indicated in the call. The next resistance is at ± $4.7 USD and ± $6.5 USD. If this are reached, is likely a new one in ± $9.15 USD. By the moment, the intense volume can signal buy or massive exit.
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjoelpadilla.wixsite.com/jjpl-index
Nikola Corp [NKLA] is a controversial stock that has no earnings and its biggest risk is the possibility of bankruptcy. Even though the SP500 has won since October 2022, but not NKLA, this may have momentum and all the hupe of TSLA, NIO, LCID or RIVN. Surely, it never get back to new hights in the long term, NKLA could have action between ± $0 USD and ± $22.52 USD zone.
The last bottom was at $0.50 USD. The "logic" is to short it at any price below the price when it was listed as SPAC (the risk of bankruptcy is so real). However, as many junk stocks, a short-squeeze might be possible, and the price could rise to ± $11.5 USD. In that sense, an example of trading could be:
- Call (sell): ± $15 USD
- Call (buy): ± $10 USD
- Put (buy): ± $1.5 USD
The big risk was already mentioned. Another risk is the possibility of a gamma-squeeze If the price pierces the maximum price indicated in the call. The next resistance is at ± $4.7 USD and ± $6.5 USD. If this are reached, is likely a new one in ± $9.15 USD. By the moment, the intense volume can signal buy or massive exit.
The best analysis is yours!
J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjoelpadilla.wixsite.com/jjpl-index
Copyright: Joel Padilla 2023
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