Trade of the Week: NKLA | Investors Alley

Trade of the Week: NKLA

June 27, 2023 6:45 am by Jay Soloff

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Sometimes large block options trades can leave you scratching your head. For example, why would Nikola (NKLA), a publicity- challenged electric truck company, have a 50,000-lot 3-way spread trade in its options? After all, the stock is only trading around $1 per share. It looks like this could be a cheap put spread collar for someone who owns a lot of the stock. Conversely, it could be a way to collect premium if NKLA stays in a range. Either way, it starts to become more apparent once you dig into the trade details.

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