This underwater China EV stock is primed for a ‘significant rally,’ according to options trader

News Snapshot:

With the Chinese equity markets lagging further behind, China has now launched fiscal and monetary policy to stabilize it. As Chinese equity valuations tumble and the government utilizes multiple fronts to shore up confidence, I'm looking at beaten-down stocks such as EV-maker Xpeng (XPEV) for opportunities. Despite increasing competition in an already crowded industry, XPEV has proven its ability to execute on organic growth and margin expansion during these tough times. This provides an opportunity for a significant bounce in an oversold and undervalued stock. With the stock down over 55% in the past 6 months and 85% from its...