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Greatest ER Ever, but what happened to the share price? Let's analyse based on factual data. ( SEC filings)
It looks like JP Morgan Chase could be responsible for yesterday's market manipulation. Yesterday's SEC filings show that JPMC has dumped some of their NIO shares while purchasing some PUT and Call Options. Why? NIO was trading around $15.28 at the opening bell. JP Morgan Chase could've bought some PUT options at lower strike price and then they could've dumped some of their shares to bring the price down and paint a picture that market is moving in downwards direction. This could've increased the value of their PUT options. Some retail investors who saw this move would've sold their positions thinking market is reacting negatively to the news even though it the the GREATEST ER in NIO's history. Some stop loss orders would've got triggered and some early profit takers would've taken profit too. JPMC would've then purchased some Call Options while market is moving downwards at a cheaper price. Now they can simply repurchase those dumped shares at almost 7-8% discounted price if they still want to increase the position size on NIO and at the same time increase the value of their Call Options.
Question we all should ask is "Is NIO is getting stronger fundamentally?" , "Do you see NIO dominating Chinese EV market and entering other markets?" , "Is China supporting NIO?" Answers to these questions will help you understand the future of NIO. China is changing it's rules and regulations to accommodate NIO?s needs like selling cars without a battery and making battery as a service. This is the first time in the world something like that is going to be launched. This business model will generate some serious revenue.
Do your own research when investing. Sometimes what market wants you to think and reality could be two different things.
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