Latest on NIO Stock

On June 21, 2024, the pre-market price for NIO is hovering around $4.28.

The last closing price is at $4.33.

LEAPS 101 and NIO Stock

Ever wish you could hop into a time machine and buy NIO stock at a fraction of its current price? While we haven't quite mastered time travel (yet!), we do have a secret weapon for savvy investors like you: LEAPS options.

LEAPS 101: The Basics

LEAPS, or Long-Term Equity Anticipation Securities, are like long-dated options contracts. They give you the right (but not the obligation) to buy a stock at a specific price (the strike price) on or before a future date (the expiration date).

Why NIO and LEAPS are a Match Made in Investor Heaven:

• Time is on Your Side: With expiration dates up to three years out, LEAPS gives NIO plenty of room to grow.

• Less Upfront Cash: LEAPS allows you to control more shares with less capital than buying the stock outright.

• Flexibility: You choose the strike price and expiration date to align with your risk tolerance and profit goals.

LEAPS in Action: A NIO Scenario

Let's say you're bullish on NIO's long-term prospects. You could buy shares at the current pre-market price of $4.33, but what if you could secure a lower price?

Here's where LEAPS comes in. You could buy a LEAPS call option with a strike price of, say, $5. If NIO's price rises above $5 before the option expires, you can exercise your right to buy shares at that lower price and pocket the difference.

Leveling Up: Advanced LEAPS Strategies

Once you've mastered the basics, you can explore advanced LEAPS strategies to enhance your returns:

• Covered Calls: If you already own NIO shares, selling covered calls against your position can generate additional income while still allowing for upside potential.

• Spreads: Combining multiple LEAPS options (e.g., buying a call with a lower strike price and selling one with a higher strike price) can create various risk/reward profiles.

• Rolling: As your LEAPS near expiration, you can "roll" them forward by closing your existing position and opening a new one with a later expiration date. This allows you to extend your investment timeline and potentially capture more gains.

LEAPS Aren't Foolproof (But They're Pretty Darn Cool)

Remember, options trading involves risk, and LEAPS are no exception. Always do your due diligence, understand the mechanics, and never invest more than you can afford to lose.

Ready to Take the LEAP?

If you're looking for a way to potentially supercharge your NIO investment, LEAPS might be the perfect tool. They offer flexibility, leverage, and the potential for significant gains if your bullish thesis on NIO proves correct.

So, are you ready to LEAP into the future of electric vehicles?

Disclaimer: This newsletter is for educational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making any investment decisions.

Remember, knowledge is power. The more you learn, the better equipped you'll be to make informed investment decisions and achieve your financial goals.

That's it, smart investors!

This is the Investing Wise Academy saying:

“Cheers to wealth, wisdom, and a dash of madness!”

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