The Canada-based car maker Electrameccanica Vehicles Corp (NASDAQ:SOLO) is in the spotlight today, after Benchmark initiated coverage with a $6 price target and a "speculative buy" rating. Benchmark is the first analyst to weigh in on the electric vehicle manufacturer, which just went public in August of last year. At last check, SOLO stock is up 30.3% at $4.49.
SOLO stock touched a three-month high in mid-February, after GM news caused the shares to quadruple. Since then, the equity has been on the decline -- breaking beneath the 30-day trendline on Monday, for the first time since last month's bull gap. As of today, however, SOLO is up 321.6% year-to-date, and just broke north of its 320-day moving average, which acted as a ceiling during February's spike.
Options traders are swarming the security in response. So far, 2,367 calls and 285 puts have crossed the tape -- roughly 38 times the average intraday volume. Much of this bullish activity surrounds the weekly 9/20 5-strike call, where it looks like new positions are being bought to open in anticipation of even more upside for SOLO.