The Robinhood Trader has a profound effect on option flow.
The best most recent case is NIO.
NIO is a name that popped up on Little John a few days ago that we have ridden from 27 up to 39.
I think NIO is going higher too.
The Robinhood feedback loop is still going.
Take a look at trading on options that expire in 2 days:
NIO is trading above $38, and 172,000 $40 strike calls traded…
THAT EXPIRE IN 2 DAYS…
Against 20k open interest!!
Lets also not forget that 50k $37s, 100k $38s, 70k $39s, and 50k $41 and $42s traded (in total).
That is just under 300,000 option contracts…MOSTLY OPENING…that expire in 2 DAY!!!!
Robinhood traders are setting up NIO to make the end of this ‘wave’ pretty wild.
I am looking for a push well above 40, then some sort of ugly dumping.
There are stocks that are earlier in this cycle than NIO, another name I am watching is…
I’ll tell you tomorrow (my Little John Subs get to see it 1st).
Your Only Option,
P.S. – I’m making a special downloadable report of all the insider intel that we gave at our special post election event. I can’t wait for you to get your hands on it. I’m working fast!
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