Some information that will help you plan your trades!
Current MMM: +/- $6.50 (NIO needs to move more than this dollar amount in the direction you’re playing it to make money on your options)
IV of options expiring this week: 222.11%
IV of options expiring next week: 178%
^^^ there’s about 44% of volatility priced in to this week’s options)
Current one standard deviation range: $53.13 to 40.95 (68.27% chance it stays here)
Current two standard deviation range: $60.36 to 35.84 (95.45% chance it stays here)
The above ranges are where I’ll be looking to plan some spreads, but will need to see how price action plays out throughout and towards the end of the day first.
Just wanted to throw out this info for those thinking of playing NIO earnings or those that didn’t know you could almost 100% guarantee profits with spreads/more advanced options strats. Also with that, less risk = less reward. The higher the probability of success, the lower max profit you will have.
Good luck everyone!
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.