I hope you wrapped up last week’s trading activity on a green note..
Averaging 1-2 100%+ trades per day…
| Ticker Code | Ticker Name | Ticker Industry | Price Change | Average Volume (50)* |
| BOXL | Boxlight Corp | Biotechnology | 181.73% | 27,831,458 |
| GNPX | Genprex Inc | Auto Manufacturers | 13.89% | 2,055,459 |
| MVIS | Microvision, Inc. | Scientific & Technical Instruments | 92.31% | 13,826,594 |
| PRCP | Perceptron, Inc. | Surgical appliances and supplies | 25.07% | 3,409,965 |
| DNR | Denbury Resources Inc. | Auto Manufacturers | -8.00% | 30,875,588 |
| VRNA | VERONA PHARMA P/S ADR | Biotechnology | 72.04% | 3,384,138 |
| GENE | Genetic Technologies Limited | Biotechnology | 97.58% | 14,382,898 |
| VXRT | Vaxart Inc | Communication Equipment | 369.08% | 42,265,173 |
| MRNA | Moderna Inc | Internet Retail | 20.83% | 26,571,517 |
| EROS | Eros International plc | Personal Services | -5.93% | 3,760,575 |
| RMBL | RumbleON Inc | Entertainment | 154.17% | 1,833,822 |
| IBIO | Ibio Inc | Biotechnology | 225.44% | 38,427,415 |
| IMV | Imv Inc | Biotechnology | 76.66% | 3,107,939 |
| INMB | INmune Bio Inc | Biotechnology | 136.70% | 2,050,511 |
| TNXP | Tonix Pharmaceuticals Holding Corp | Gold and Silver Ores | 123.08% | 39,610,376 |
| IGC | India Globalization Capital, Inc. | Consumer Electronics | -3.51% | 789,592 |
| TSLA | Tesla Inc | Software – Infrastructure | 63.93% | 15,338,188 |
| FBAK | First National Bank Alaska | Internet Content & Information | -8.42% | 228 |
| VCNX | Vaccinex Inc | Diagnostics & Research | 90.27% | 1,020,852 |
| CAPR | Capricor Therapeutics Inc | Diagnostics & Research | 73.48% | 1,561,193 |
Let’s take a look at Tesla (TSLA) and NIO Inc (NIO), both electric car companies.
On the first trading day of 2020, TSLA was about $430. Here in the premarket, it’s pushing $1,400.
On the first trading day of 2020, NIO was about $4. This morning it’s approaching $12.
With TSLA and NIO being electric car companies which are both up about 300% year-to-date, how are traditional automobile companies, General Motors and Ford doing this year?
They’re both down about 25% year-to-date.
So what is going on in the electric car space which causes us as traders to see their shares increase, unusual call options activity go bezerk, and make daily prints on the dark pools?
Innovation, adaption, and of course, following the paper trail are the top three things which come to my mind!
While TSLA did see $25.1M worth of call option sweeps last week and the bulls are indeed out on this stock, I’ll also be watching TSLA’s go-to sympathy play, NIO.
Let’s start with TSLA…
TSLA is currently clinging to its 20-day simple moving average line, the green line shown above. After a small pullback last week after releasing earnings, I’ll be looking for TSLA to recover that small pullback
If this scenario pieces together, I’d buy call options with a 100% profit target and I’d keep a very tight stop of a break below TSLA’s 20-day simple moving average line.
As for an NIO, it is a go-to sympathy play for TSLA. As an electric car company itself, it is significantly less expensive to trade both stock and options on, it moves quickly like TSLA does, and also produces up-and-coming electric cars of its own, which are mostly sold in China.
Given NIO often moves with very similar price action to TSLA, NIO is also trading right at its 20-day simple moving average line, the green line shown above. After a small pullback last week (just like TSLA saw), I’ll be looking to possibly play it to the upside as NIO could recover last week’s losses and more given it’s 300% year-to-date increase in price-per-share.
If this scenario pieces together, I’d buy call options with a 100% profit target and I’d keep a very tight stop of a break below TSLA’s 20-day simple moving average line.
I’ll send you some updates / new watchlist ideas this afternoon if I see appealing opportunities in the market.
Davis Martin
America’s #1 Options Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.