ALL Access Jun 19 VTIQ $30 calls under $2.20
Dear Subscriber,
In the options trading world, a "lottery ticket" is usually buying an "out of the money" option with a week or less to go.
With A) the Nikola Motors/VTIQ IPO merger now set for first week of June (June 3 Vote by VTIQ Board for Merger Approval) and merger complete a day or two after (where VTIQ shares and warrants are automatically converted to NKLA and NKLAW shares and ticker) and B) the extreme volatility in VTIQ/NKLA shares,
I thought it would be fun and reasonable to put on a $30 June 19 option and get significantly better odds than a real lottery ticket.
The KEY here in this trade is you are ONLY USING $$$ that you don't care if they go to ZERO.
The bet is the millennial investor (aka the "I buy stocks on my Robinhood app") fervor surrounds VTIQ comes back with the headlines and post-merger hoopla (CNBC FBN CNN Money Yahoo Finance WSJ etc.). I use this kind of call option as what I call my regret avoidance trade aka "DOH--why did I not buy some cheap option knowing what I know about X!"
With a solid bottom here at $22-$24--the $30 June 19 CALL OPTIONS under $2.20 are a reasonable lottery ticket with a 20+ trading days to go.
Good luck!
Here is my link to the business merger deck--You MUST read this amazing deck which is no longer available to the public (but I got one anyway--thanks to our insider).
Here is the video analyst introduction
Here is the first announcement on CNBC of the merger
Here is the Fox Business interview (you gotta let the ad run)
Here is the press release on the merger and company.
Here are just a few of the 413 Articles on Nikola.