NIO

New Options Trade: High Upfront Income, Attractive Long-Term Growth

If you like high income, but you are a stickler on entry prices, you may want to consider the options trade described in this report. The trade covers an attractive high-growth stock, trading at a significantly lower price than just 2 months ago due to market noise—as the business remains fundamentally attractive. Rather that purchasing the shares outright, you might instead consider this trade—which generates high upfront income—and gives you a chance to pick up the shares at a significantly lower price. We believe this trade is attractive to place today, and potentially over the next few trading sessions (as long as the underlying share price doesn’t move too dramatically from here).

Attractive Growth, Share Price Pullback

If you are looking for a steady dividend-growth stock, this report is not for you. However, if you are looking to add a little powerful long-term price appreciation to your portfolio, these shares are worth considering, especially on the recent price pullback. The company is well-positioned as a premium brand in China, it enjoys rapid sales growth and a large and growing total addressable market, and it has the backing of the Chinese government. In this report, we review the company’s business model, market opportunity, COVID-19 impacts, competitive position, valuation and risks. We conclude with our opinion on whether the company offers an attractive risk-reward versus its long-term growth opportunity.