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Electric Vehicles Related Stocks Are Heating Up – AYRO, CAAS, CBAT

No matter which investment-related websites I visit these days, articles and discussions about Tesla and Nio Inc keep coming up.

While these two stocks do not show up on my options screeners, I do see a lot of other stocks related to electric vehicles that skyrocketed recently thanks to the electric vehicles boom that’s going on.

Below are the three stocks that I am watching closely right now. The way I execute the Wheel strategy is by focusing on selling Put and selling a Covered Call is just an afterthought. In other words, I do not enter into a position speculating a stock will go up. I only care the stock price doesn’t drop significantly. The stock can go up in price, stay sideways, or drop a little. My position will still be profitable as long as the price doesn’t drop substantially.

AYRO

Below is the profile from finviz.com.

Ayro, Inc. designs and manufactures light-duty, emissions-free electric vehicles for urban and community transport, local delivery, closed campus mobility, recreational, and government use. It offers AYRO 311, a 3-wheeled vehicle for professional and personal use; Club Car 411 for low-speed logistics and cargo services for campus; and AYRO 511 4A4 concepts. The company was founded in 2017 and is based in Round Rock, Texas.

The action I Took for AYRO

It has a nice high IV and a good premium level. I have already opened a diagonal calendar position (Sell $5 strike Put Jan expiration and buy $2.5 strike Put Feb expiration) instead of a single Put to add some protection.

If the price doesn’t move too much or drop a bit, the diagonal calendar would actually give a little higher profit compared to a simple Put spread at expiration.

ayro 12.19.2020

 

ayro diagonal calendar 12.19.2020

CAAS

Below is the profile from finviz.com.

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People’s Republic of China. The company produces rack and pinion power steering gears for cars and light duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronic and hydraulic power steering systems and parts. It is also involved in the marketing of automotive parts in North America and Brazil, as well as the provision of after sales, and research and development support services. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou City, the People’s Republic of China.

 

The action I Took for CAAS

It has a nice high IV and a good premium level. I have already opened a diagonal calendar position (Sell $5 strike Put Jan expiration and buy $2.5 strike Put Feb expiration) instead of a single Put to add some protection.

 

caas 12.19.2020

CBAT

Below is the profile from finviz.com.

CBAK Energy Technology, Inc., through its subsidiaries, develops, manufactures, and sells lithium batteries in Mainland China, the United States, Europe, Taiwan, Israel, and internationally. Its products are used in various applications, including electric vehicles, such as electric cars, electric buses, and hybrid electric cars and buses; light electric vehicles that include electric bicycles, electric motors, and sight-seeing cars; and electric tools, energy storage, uninterruptible power supply, and other high power applications, as well as cordless power tools. The company was formerly known as China BAK Battery, Inc. and changed its name to CBAK Energy Technology, Inc. in January 2017. CBAK Energy Technology, Inc. was founded in 1999 and is based in Dalian, China.

 

The action I Took for CAAS

I already opened a diagonal calendar position (Sell $5 strike Put Dec expiration and buy $2.5 strike Put Jan expiration) and got assigned. Will aim to sell it at around $5 and sell the protective $2.5 Put as well.

cbat 12.19.2020

 

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