Albemarle (ALB)

Jan 4, 2021Trade Ideas

Happy New Year to you and yours!

While most stocks are red today, our Nio trade is exploding. On Dec. 31, we highlighted opportunity in the NIO stock and the NIO Feb. 19, 2021 50 calls. We even hedged with a small bet on the NIO Feb. 19,2021 47 put.

At the time, the NIO stock traded at $49.35 a share. It’s now up to $53.10 after hitting a high of $54.45. The NIO Feb. 19, 2021 50 calls traded at $7.34. It’s now up to $9.52 and could push even higher from here on EV demand.

Another hot stock to pay close attention to on the EV boom is lithium company, Albemarle (ALB). For the EV boom to continue, automakers must have lithium supply. Unfortunately, they could run short, as demand picks up steam. Breaking above consolidation at $149, we’d like to see ALB test $160, near-term.

To profit from that potential move, we can buy the ALB stock at market. And, or we can buy to open the ALB Feb. 19, 2021 160 calls at market. We can also hedge by taking a small bet on the ALB Feb. 19, 2021 145 puts.

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