Nio Inc. (NIO)

Dec 31, 2020Trade Ideas

Happy New Year to you and yours!

The year ahead should be another blockbuster year for electric vehicle stocks.

For one, Joe Biden is supportive of having far more EVs on the road. Two, California Gov. Gavin Newsom just signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035. And three, in China, Wedbush Securities analyst Dan Ives says it could see eye-popping demand for EVs in 2021 and 2022, as noted by Seeking Alpha.

One of the biggest beneficiaries of that news could be Nio Inc. (NIO), which is just beginning to break out of consolidation.

We’d like to see a near-term test of $57.50 from a current price of $49.35.

There are a few ways to trade NIO here. One is to buy the NIO stock at market prices. And, or two, you can buy to open the NIO Feb. 19, 2021 50 calls at market. If you want to hedge the bet, you can also open a small position in the NIO Feb.19, 2021 47 puts.

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