KNDI has held the 50-SMA for a while. Looking for a bounce we can enter a trade giving huge upside potential while also giving some downside protection.
Looking at the 15 Jan 2021 exp we can sell the 7 Put giving a credit of $100. Then use our credit to purchase the 9 Call and sell the 14 Call creating a bull call spread. The total trade can be entered for about a $10 credit.
If KNDI stays between 7 and 9 we would just keep our credit of $10. Max profit of $510 is achieved at 14. If KNDI trades below 7 at expiration we would have to buy the stock at 7 per share.