Start the conversation
Electric truck-maker Nikola Corp. (NASDAQ: NKLA) has been one of the wildest stocks of 2020.
The company went public in a reverse merger on June 4 at $34 per share and jolted 176.5% higher to $94 just three trading days later.
Since then, NKLA has experienced a significant drop and sits near $27 per share today.
But that doesn't mean we can't make money on it...
You see, Nikola's volatility is actually a good thing if you want to make fast money trading options.
So today, we're going to show you how to make money with options from the fall of NKLA stock using a strategy known as a "put spread" that Money Morning's own options trading expert, Andrew Keene, just revealed.
Here it is...
Nikola's Fraudulent History
Nikola has set some lofty goals for itself as it attempts to disrupt the $6.5 trillion global transportation sector.
Essentially, the company's mission is to eliminate the need for truck drivers with its autonomous electric 18-wheelers.
The problem is, Nikola has not built anything that is even close to being ready for the road today.
In fact, a report from Hindenburg Investment Research earlier this month just accused Nikola of being an "intricate fraud."
In the report, it accused Nikola of having no functioning prototype, nothing in pre-production, and a deal with General Motors Co. (NYSE: GM) made out of desperation.
Hindenburg concluded that it took a short position in NKLA stock, which really got short-sellers excited.
On Sept. 21, Nikola founder Trevor Milton resigned as executive chair amid those fraud allegations. And the stock dropped 19.33% that day alone.