To The Moon

On Monday, unusual options movements appeared in $XPeng Inc.(XPEV)$ shares, with large bearish orders followed by large bullish orders. Professional traders really know how to play the game.

Reasons for stock price move: New energy vehicle companies collectively announced June sales, Xiaopeng in June increased by 15%; The delivery of new cars of NIO broke 10,000, an increase of 74%; The ideal monthly delivery exceeded 30,000 for the first time, an increase of 15%; The most heavyweight Tesla Q2 deliveries reached a new high, with production up 86% and deliveries up 83% year-on-year, all exceeding market expectations and refreshing the highest delivery record in a single quarter.

Affected by the above good news, new energy vehicles drove higher on Monday.

However, 20 minutes after the opening, XPEV's option move appeared in the put order:

buy $XPEV 20230707 21.5 PUT$

The exercise price is 21.5, deep ITM, possibly because of fear of time loss; The total volume of options was 9,648 lots, and the total turnover reached more than 6.6 million.

After the appearance of this big order, XPEV's stock price turned to a high opening trend:

But this time is not over, 10:40, the stock price is near the bottom, there is a call order in the options move, and every 30 to 40 minutes to buy in batches:

buy $XPEV 20230818 20.0 CALL$

Exercise price selection 20, OTM, a total volume of 21,400 hands, the total turnover reached more than 800,000.

I don't know what you think after watching this series of operations, but my idea is that the agency really can play.

Choose in-the-money options carefully when shorting, and boldly choose deep out-of-the-money options when long. Is it the same wave of people trading? Judging from the cost of calling a large order, there are both possibilities. While put isn't making a lot of money right now, and it looks like it's still down on Wednesday, call costs are low enough. If XPEV's stock price can really hit 20, who cares if the option is 20 cents to buy or 40 cents to buy?

The low cost of the call creates another problem, such asymmetric bets are another story if they are meant to lure the bulls in to kill.

I've never seen anything like this before.

Weilai and the ideal is not quite the same, one is a little slow response, 11 o 'clock to start selling call; The other one didn't have a big order that day.