EVGO and NIO are both surging this week
Electric vehicle stocks EVgo Inc (NASDAQ:EVGO) and Nio Inc (NYSE:NIO) were surging yesterday, up 11.3% and 16.2%, respectively. This positive price action has both stocks rebounding from their recent selloffs, as its likely that investors are seeing attractive buying opportunities in these these beaten-down shares.
Recently, NIO fell to an annual low of $27.52. However, yesterday's pop has Nio stock breaking above its 10-day moving average, which helped push the equity lower this past month. Year-to-date, the security is down 33%.
Options traders are targeting NIO amid the soaring price action. This particular electric vehicle name's options pits are usually busy, so its notable that options volume is running at three times what's typically seen. Yesterday, 716,000 calls and 300,000 puts crossed the tape. The weekly 12/31 33- and 32-strike calls were the most popular, with new positions being opened at both.
EVgo stock has been sliding since its mid-November peak, and is now bouncing off Wednesday's two-month low. It remains to be seen whether the stock can break above overhead pressure at the 20-day moving average, which kept a lid on EVGO's most recent rally. It's also worth pointing out that EVGO is also heavily shorted, with short interest making up 20.1% of the stock's available float.