Nio Stock Charges Over Resistance, Options Traders Hammer Calls

NIO, Inc NIO reported July deliveries of 7,931 electric vehicles on Monday, which represents 124.5% year-over-year growth. The results pushed Nio’s stock up firmly over a resistance level at the $45 mark.

For technical traders, the move higher demonstrates continued momentum after Nio printed a bullish engulfing candlestick on Friday. The move came amid reports the premium Chinese EV manufacturer plans to launch an entry-level mass-market vehicle in the first half of 2022 under a different brand name.

Option traders believe NIO’s stock will run higher still over the next weeks and months and on Monday hammered NIO call contracts. Together the traders purchased over $1.73 million of bullish calls, with one trader betting Nio could reach $60 by January.

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 or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of 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.

See also: How to Buy Nio Stock

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

• At 9:33 a.m., a trader executed a call sweep near the ask of 351 NIO options with a strike price of $40 expiring Aug. 20. The trade represented a $208,845 bullish bet for which the trader paid $5.95 per option contract.
• At 9:46 a.m., a trader executed a call sweep at the ask of 200 NIO options with a strike price of $41.50 expiring on Aug. 20. The trade represented a $110,000 bullish bet for which the trader paid $5.50 per option contract.
• At 9:58 a.m., a trader executed a call sweep near the ask of 352 NIO options with a strike price of $50 expiring on Sept. 17. The trade represented a $95,040 bullish bet for which the trader paid $2.70 per option contract.
• At 10:04 a.m., a trader executed a call sweep above ask of 210 NIO options with a strike price of $46 expiring on Aug. 6. The trade represented a $30,870 bullish bet for which the trader paid $1.47 per option contract.
• At 10:04 a.m., a trader executed a call sweep near the ask of 201 NIO options with a strike price of $50 expiring on Aug. 20. The trade represented a $30,552 bullish bet for which the trader paid $1.52 per option contract.
• At 10:06 a.m., a trader executed a call sweep near the ask of 200 NIO options with a strike price of $46 expiring on Aug. 6. The trade represented a $27,800 bullish bet for which the trader paid $1.39 per option contract.
• At 10:13 a.m., a trader executed a call sweep at the ask of 2,000 NIO options with a strike price of $54 expiring on Aug. 20. The trade represented a $160,000 bullish bet for which the trader paid 80 cents per option contract.
• At 10:22 a.m., a trader executed a call sweep near the ask of 200 NIO options with a strike price of $46 expiring on Aug. 6. The trade represented a $30,600 bullish bet for which the trader paid $1.53 per option contract.
• At 10:23 a.m., a trader executed a call sweep at the ask of 811 NIO options with a strike price of $54 expiring on Aug. 20. The trade represented a $64,880 bullish bet for which the trader paid 80 cents per option contract.
• At 10:30 a.m., a trader executed a call sweep near the ask of 221 NIO options with a strike price of $46 expiring on Aug. 6. The trade represented a $31,603 bullish bet for which the trader paid $1.43 per option contract.
• At 10:31 a.m., a trader executed a call sweep near the ask of 250 NIO options with a strike price of $50 expiring on Aug. 20. The trade represented a $37,250 bullish bet for which the trader paid $1.49 per option contract.
• At 10:40 a.m., a trader executed a call sweep near the ask of 201 NIO options with a strike price of $46 expiring on Aug. 6. The trade represented a $31,557 bullish bet for which the trader paid $1.57 per option contract.
• At 10:43 a.m., a trader executed a call sweep at the ask of 200 NIO options with a strike price of $45 expiring on Aug. 13. The trade represented a $63,800 bullish bet for which the trader paid $3.19 per option contract.
• At 11 a.m., a trader executed a call sweep near the ask of 580 NIO options with a strike price of $45 expiring on Sept. 17. The trade represented a $301,600 bullish bet for which the trader paid $5.20 per option contract.
• At 11:21 a.m., a trader executed a call sweep near the ask of 200 NIO options with a strike price of $48 expiring on Aug. 13. The trade represented a $31,200 bullish bet for which the trader paid $1.56 per option contract.
• At 11:58 a.m., a trader executed a call sweep near the ask of 264 NIO options with a strike price of $46 expiring on Aug. 6. The trade represented a $32,736 bullish bet for which the trader paid $1.24 per option contract.
• At 12:04 p.m., a trader executed a call sweep at the ask of 490 NIO options with a strike price of $45 expiring on Sept. 3. The trade represented a $196,000 bullish bet for which the trader paid $4 per option contract.
• At 12:41 p.m., a trader executed a call sweep near the ask of 952 Nio options with a strike price of $46.50 expiring on Aug. 6. The trade represented a $111,384 bullish bet for which the trader paid $1.17 per option contract.
• At 12:53 p.m., a trader executed a call sweep near the ask of 350 Nio options with a strike price of $60 expiring on Jan. 21, 2022. The trade represented a $141,750 bullish bet for which the trader paid $4.05 per option contract.

NIO Price Action: Shares of Nio were trading 2.42% higher at $45.73 at last check Monday.