Nikola Corporation (NKLA) saw a significant price increase today, closing at $1.19, up 7.21% from the previous close of $1.11. The stock opened at $1.11 and reached a high of $1.44 before settling down. The trading volume was exceptionally high at 27,269,760 shares, which is 366.48% of the average volume, indicating heightened investor interest.
The surge in NKLA's stock price appears to be driven by speculative trading in the options market, particularly around the $2.00 strike call options, which saw significant activity despite an 85% chance of expiring worthless. This speculative interest suggests that traders are betting on a potential short-term rebound, contributing to the upward momentum.
Additionally, discussions on Reddit highlighted concerns about Nikola's financial health, with users expressing skepticism about the company's ability to secure additional funding. Despite these concerns, the stock's significant year-to-date decline of 95.64% may be attracting bargain hunters looking for a potential rebound as the year ends.
The combination of speculative options trading and bargain hunting amid year-end portfolio reassessments likely fueled today's price action.