oldarmy1 said:
Trying to key in on Put premium should NIO hit close to $7. The $8 Oct Puts are at 75x80.
So selling naked Puts there would get you a net entry of $7.25-$7.30 if buyer of your sold Put sells you their shares based on NIO being at $8 or below.
I think if we see a drop close to $7 premium pop would make $7 puts closer to $1. That would be a net $6 entry if NIO was below $7 come expiration.
I'd be all over a combo of shares and naked Puts down around $7.
What was explained above. This is what it looks like. Note the volume drying up on the daily. Lower highs each day with support holding until.....
Now its always possible whoever is buying at $7.50 is a huge long term entity and will take all sellers to accumulate. That is the exception not the odds.