Profit Pregame

Hot Scan Ideas on NIO and… Turkey

I Apologize in Advance, Everyone

But I think it’s mandatory – if an “AK official” trade idea on Turkey, of all things, hits my proprietary options scanner just days before Thanksgiving…

I kind of have to include that hot action for all of my newsletter subscribers, right?

Of course.

The iShares MSCI Turkey ETF (TUR) got hammered Tuesday.

With inflation in Turkey hovering around 20%, President Erdogan continues to insist that interest rate hikes will make the situation worse – in direct contrast to conventional economic wisdom.

As a result, the lira collapsed Tuesday to historic lows…

But big-money options buyers responded by scooping up the TUR Jan 2022 $22-strike calls for less than half a dollar per contract.

With TUR hitting lows around $19 early in the session, that’s not such a wildly aggressive bet that the geographically focused ETF can bounce back post-Turkey Day.

(Again, I’m sorry.)

Keep an eye on this one, folks – the big spenders certainly are.

EV Stock Scan Round 2: NIO’s Big Break

Yesterday, I called out a super-rare scan signal on none other than electric vehicle giant Tesla (TSLA).

Today, let’s talk about another notable player in the space: Shanghai’s own Nio (NIO), which landed on my scanner Tuesday morning along with a number of other China names.

While the stock lived up to my call-buying ideals by making a fast move higher…

There was a little bit of a caveat to NIO’s near-immediate pop.

Here’s what you might not know about my go-to ATR indicator…

If you’ve been following my analysis for a while, you might already know that average true range (ATR) is the go-to metric I use to gauge how far a stock might move in a single day.

I take the early low of the session, add the ATR – essentially, how much the shares move on an average day – and then arrive at what might be an achievable intraday high for the stock, based on historical patterns.

In the case of NIO, its ATR is a healthy 2.15… and the shares almost instantly made a run at this 2-point plus target.

After opening at $41.50, the stock rocketed all the way up to an early peak of $43 – but then fizzled fast.

Courtesy of Google Finance
Why’s that?

As I explained to the chat, sometimes ATR levels can appear to act as support or resistance, since these essentially correspond to a stock’s average daily range.

Sometimes the shares will make another run at this level and break through; other times, they’ll back down and flatten out.

That’s why I rely on multiple indicators to tell me whether a signal is actionable – and high short interest to trigger a possible squeeze is always a plus!

When ATR Is Only Half the Story

For the first time ever, members of my newly upgraded 1450 Club have access to my “Double Confirmation System” – a unique code that combines two key indicators for my best precision yet on trade exits.

Plus, there’s still the same unparalleled access to my daily live options scan sessions every Monday through Thursday…

Not to mention the targeted options training from my handpicked coach, just for members of my premium 1450 Club.

Get a piece of the biggest options trades going off in the market – along with all the knowledge & training you need to start managing them like a pro.

I’ve got it all packaged up for you right here in 1450 Club… just in time for the holidays! (Yes, I thought of everything.)

Enjoy the trading holiday tomorrow, gang – I’ll be back with more soon!

Andrew Keene
Founder, Profit Pregame

Community Tips

Inline Feedbacks
View all comments