| Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we'll share some of our top trading ideas — and our biggest winners!
Have you guys been paying attention to Nio this week? Better yet, the past month?
Nio Inc. (NYSE: NIO) is a Chinese electric vehicle (EV) maker I've covered a lot in the past year. It was even a pick for my Sweet Spot Stocks strategy back when it was selling in the teens — and we sold half of our position for a 50% gain!
Despite that, I've had some polar opposite views on the company.
At the beginning of the year, I said Nio's share price would hit $100 by the end of 2021.
But toward the end of May, after a big sell-off, I ranked Nio in my "second tier of crappy EVs." I was high on Ford Motor Co. (NYSE: F) after the announcement of the F-150 Lightning, a full-sized EV pickup truck.
Now, Nio has been on absolute fire…
But Will It Get Back to $100?
The big indicator I'm looking at is implied volatility, which is low with earnings still a ways off on Aug. 9. Despite low volatility, Nio is up around 20% for June.
So will Nio emerge as the best Chinese EV stock against its competitors?
We'll have to wait for its earnings event in August — when volatility increases, but here's what I expect...
Into the earnings event, implied volatility will rally, therefore option prices — puts and calls — will be more expensive.
I expect the stock to climb to the upper end of its range — around $57 to $60. I got this number from looking at implied volatility for the month of August. From the Aug. 6 expiration to the end of the month, implied volatility increased about 4.5% — from about 65% to 69.5%.
Typically, implied volatility increases around earnings, and they're predicting a roughly $10 move.
If you were to add $10 to the average range this week, you'd be just north of $60. So while it may not get to $100 just yet… It's still the best pick of the bunch right now and could get there by the end of the year.
BIG Wins
We had a few more big winners this week from our 3D Profit Surges and Weekly Blitz Alerts strategies. Transocean Ltd (NYSE: RIG) experienced massive insider trading and dropped 2%. A trade entry alert was issued to our 3D Profit Surges members on June 28. After two trading sessions and a nice pop, a trade exit alert was sent for RIG on July 1.
+64.47% on RIG (Aug. 20 $4 CALL). Entered on June 28 at $0.76 a contract. Exited on July 1 at $1.25 a contract.
We saw Momo Inc. (Nasdaq: MOMO) experience a surge in call buying and it bounced back from its 8- and 200-day moving averages. A trade entry alert was sent to our Weekly Blitz Alerts members on June 22.
+45.5% on MOMO (Aug. 20 $$15 CALL). Entered on June 22 at $1.10 a contract. Exited second half of our contracts on June 28 at $1.60 a contract.
Be sure and check out our 3D Profit Surges and Weekly Blitz Alerts strategies for more BIG winners like this!
If you have a big score you'd like to share with your fellow Future of Wealth readers, email us your screenshots of the trade and/or any details you want to share at wptestimonial@gmail.com, and we'll celebrate them here!
What's in the Safe?!
WealthPress Senior Strategist Roger Scott has gone missing…
One that could help "send anyone's retirement account to the moon!"
All thanks to this breakthrough… the "Sniper Line."
Signing Off
If you're looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here's what other experts at WealthPress are saying:
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