Wall Street Eyes NIO’s Next Move—Why Traders Are Rushing Into Call Options
NIO Inc. (NYSE: NIO) is back in the spotlight as investors pile into options trading, signaling renewed confidence in the Chinese electric vehicle (EV) maker. On March 11, 2025, NIO saw a staggering 579,360 options contracts traded, with a dominant 79.4% of those being call options, indicating that traders are positioning themselves for potential upside.
Why Are Investors Bullish on NIO?
The heavy trading volume suggests that traders see potential for NIO’s stock price to climb higher. The most active options were the March 14 weekly $5 calls and the March 2025 $5 calls, showing a strong short-term bullish sentiment.
Additionally, implied volatility for NIO options rose to 92.32%, a sign that the market expects big price swings ahead. The put/call ratio of 0.23 further reinforces the optimism, as more investors are betting on the stock moving up rather than down.
Stock Performance and Analyst Reactions
On the same day as the options surge, NIO’s stock jumped 16.6% to $5.22, marking a sharp recovery from previous lows.
However, analyst sentiment on NIO remains divided.
- Goldman Sachs recently downgraded the stock to “Sell”, setting a price target of $3.90, citing concerns over intensifying competition in China’s EV market and a lack of major new model launches.
- Deutsche Bank, on the other hand, remains bullish, forecasting that NIO’s stock could double to $9.00 in 2025, backed by strong sales growth and upcoming vehicle releases.
What’s Next for NIO?
With options traders betting big on a potential breakout, the coming weeks will be crucial for NIO’s stock performance. The company faces both challenges and opportunities, as it looks to expand its market share while navigating a competitive and volatile EV landscape.
For investors, the recent surge in options activity could signal a turning point—but as with any high-risk, high-reward scenario, it’s important to stay informed and cautious before making a move.
