Call Options on NKLA on 11/1/2021

Nikola Corporation (NKLA) engages in the development and integration of energy and transportation solutions in the United States. 

The company operates in two business units: Truck and Energy.

The Truck business unit develops and commercializes battery-electric (BEV) and fuel cell electric (FCEV) Class 8 trucks for the short, medium, and long haul trucking sector. It also offers hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, and energy storage systems.

The Energy business unit develops and constructs a network of hydrogen fueling stations for FCEV customers. 

The Company is scheduled to report it's quarterly results on November 4th. Ahead of that options on the stock have been very active. On Friday alone,  25,592 calls traded on the stock, 3x expected, and implied vol increasing almost 4 points to 101.34%. Nov-19th 14.5 calls were the most active options, with total volume in those strikes near 6,500 contracts. The Put/Call Ratio is 0.25. We expect shares to move higher following the earnings report.

We will be trading November 19th Calls

Last Trade: $11.80

Trading Range: $9.02 to $37.95

Trade Buy 1 November $11.00 Call at $1.30 For a net debit of $1.30 Profit/Loss Analysis Breakeven at $12.30 Maximum profit is unbounded Maximum loss is ($130.00) at strike of $11.00 Closing Summary Sold 1 November $11.00 Call at $3.40

Position closed on 11/4/2021 at price of $3.40 with a 161.54% gain in 3 days.

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