TopOptionAlert
Oct 23, 6:19 AM
$LI NOV20 12C · in play
Zone:
$11.39 to
$11.55
Invalidation: close under
$11.10
Objectives:
$12.05, then
$12.85
The math: Up 5.1% to the first objective and 12.0% to the second, against 3.2% risk on the invalidation, better than 3 to 1 to the second.
Think of Li Auto like a car that skidded into a ditch and just climbed back onto the road. The stock has fallen about half this year, but it touched
$11.10 yesterday and refused to stay down, finishing at
$11.47, which tells you the sellers are running out of steam right where buyers showed up before. This is a swing idea: a bet that a washed out name holds its floor one more time, with room toward
$12 and beyond if it does, and until late November to prove it. And what would one honest bounce be worth in a stock everyone has written off?
P.S. Wall Street's average target is
$15.17, about 32% above here, so even the cautious crowd sees the upside room.
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