Nio stock is heading for an over 80% quarterly gain
U.S.-listed shares of China-based companies are in the midst of a renaissance as China undergoes a series of extensive and aggressive stimulus measures. The good news keeps coming for Nio Inc – ADR (NYSE:NIO) in particular, after the electric vehicle company’s parent company and state-backed investors announced a $2 billion cash infusion.
At last check, Nio stock was up 15.6% to trade at $7.54, on track for its best single-session pop since November 2022. NIO is trading at its highest level since early January, and has now more than doubled off its April 22 four-year bottom of $3.61. The shares are on track for an 80.8% gain this quarter alone, but are still 17% lower in the last 12 months.
A short squeeze could keep the wind at the equity’s back. Short interest is off by 15% in the most recent reporting period, yet the 163.81 million shares sold short still account for a healthy 8.7% of NIO’s total available float.
Calls are flying off the shelves today. In just the first hour of trading, over 241,000 calls have changed hands, volume that’s seven times the average intraday amount and triple the number of puts traded. The weekly 10/4 8-strike is the most popular, while the January 10 call is also seeing notable activity.