Call Options on LI on 11/8/2021

Li Auto Inc. (LI) designs, develops, manufactures, and sells smart electric sport utility vehicles (SUVs) in China. 

It offers Li ONE, a six-seat electric SUV that equipped with a range of extension system and smart vehicle solutions.

The company was formerly known as Leading Ideal Inc. and changed its name to Li Auto Inc. in July 2020. 

On August 30th, Li Auto reported a 2nd Quarter June 2021 loss of $0.04 per share on revenue of $780.4 million. The consensus estimate was a loss of $0.06 per share on revenue of $4.4 billion. 

The company said it expects third quarter revenue of $1.08 billion to $1.12 billion. The current consensus revenue estimate is $813.2 million for the quarter ending September 30, 2021. Shares have formed a bullish "cup and handle" and are expected to move higher from this formation.

We will be trading December 3rd Options

Entry Point: $31.00

Trading Range: $15.98 to $47.70

Trade Buy 1 December $30.00 Call at $2.45 For a net debit of $2.45 Profit/Loss Analysis Breakeven at $32.45 Maximum profit is unbounded Maximum loss is ($245.00) at strike of $30.00 Closing Summary Sold 1 December $30.00 Call at $3.45

Position closed on 11/16/2021 at price of $3.45 with a 40.82% gain in 8 days.

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