TopOptionAlert
Oct 24, 6:35 AM
$XPEV NOV20 9.50C · still actionable
Zone:
$9.15 to
$9.28
Invalidation: close under
$9.00
Objectives:
$9.75, then
$10.35
The math: up 5.9% to the first objective and 12.4% to the second, against 2.3% risk on the invalidation, better than 5 to 1 to the second.
Friend, this is a swing, and the setup is simple. XPeng fell from nearly thirty bucks to nine in a year, yet it still delivered 118,390 cars last quarter, up 15% from the one before. The stock is hugging its yearly low while the company keeps putting cars on the road, and right now there are more than seven thousand November call contracts parked at the 9.50 strike, which is real money betting that nine dollars was the washout. You are not marrying the company here, you are renting a bounce in a beaten name that has a news cycle on the way.
P.S. XPeng hosts its AI Day on November 5, so this contract gets a full company news cycle two weeks before it expires.
0 replies