Why Nio Stock’s Probability Curve Points to a Hidden Upside Setup

For those who want to roll the dice on deflated public enterprises with proven upside potential, it’s difficult to overlook Nio (NIO). At first glance, NIO stock doesn’t seem particularly compelling, with the Barchart Technical Opinion indicator rating the security as a 24% Weak Sell. Not really helping matters is its near-term performance. In the trailing month, the electric vehicle manufacturer slipped 25%.

Adding to some of the brewing concerns, the options market isn’t exactly providing a comforting read for the bulls. Specifically, options flow — which focuses exclusively on big block transactions likely placed by institutional investors — showed pensive transactions this week. For example, on Monday, net trade sentiment fell $124,200 below parity. On the following day, this metric was down $1,300 below zero.