From Nasdaq: 2024-05-21 14:36:03

Vietnam’s electric vehicle manufacturer VinFast is showing potential for disruption to Tesla, with VFS stock closing at $6.32, up 29.51% in one session and over 160% in a month. Unusual options activity and a bullish sentiment suggest further upside but previous performance shows VFS stock dropped 83% in the past year.

On the bright side, the derivatives market is abuzz with interest in VinFast’s stock, signaling potential for bullish speculation. With call volume exceeding put volume and a put/call volume ratio of 0.43, retail investors are taking note. Institutional investors also show a preference for bullish sentiment, though pessimists hold a slight premium edge.

Investors may consider the meme trade and short interest when deciding to buy VinFast stock. VinFast is experiencing rapid growth but also expanding losses, with a retained loss of $7.25 billion. The capital-intensive nature of the automotive industry and a need for dilutive measures present additional risks for VFS stock.

Approaching VFS stock depends on individual objectives – long-term investment may be risky due to cash burn and industry competition. Short-term call options, like the Sep 20 ’24 7.00 Call, could offer speculative opportunities with a resistance barrier around $8. Evidence of a robust turnaround is crucial before committing indefinitely.



Read more at Nasdaq: VinFast (VFS): Assessing Pros and Cons Amid Unusual Options Spike