Workhorse Group Skyrockets 63%—What's Driving This Rally?

• WKHS surges to $4.755, up 63.4% intraday, after a previous close of $2.91
• Hits a 52-week high of $5.61 before pulling back slightly
• Massive turnover of 49.1 million shares signals intense investor action
• Recent news highlights sustainable last-mile delivery innovations, sparking renewed interest in EV tech

Today’s meteoric rise positions Workhorse as a breakout play in the EV space, but questions linger over whether fundamentals or speculative hype is driving the move. With a 95 RSI reading signaling extreme overbought conditions, traders are watching for catalysts—or cracks—to emerge.

Sustainable Tech Pushes Workhorse into Spotlight
The surge stems directly from Workhorse’s recent emphasis on eco-friendly logistics solutions, including electric delivery vehicles and drone technology. The company’s vision aligns with growing investor demand for green transportation, amplified by its May 24 Q1 earnings call and strategic partnerships like the Ziegler Truck Group expansion. Cash flow concerns and past operational challenges remain, but the market is pricing in long-term potential for its last-mile innovation, especially amid rising regulatory pressure on carbon footprints.

Bullish Options Play Amid Extreme Overbought Conditions
Bullish Technicals:
• RSI: 95.06 (extreme overbought, risk of pullback)
• MACD: 0.396 (bullish crossover confirmed)
• Bollinger Bands: Current price $4.755 vs Upper Band $2.70 (data anomaly suggests extreme volatility)

A short-term setup favors cautious bulls targeting $5.00 resistance. The 200-day MA at $0.973987 offers distant support, but immediate focus remains on near-term exhaustion risks.

Top Option Picks:
1. WKHS20260116C5 (Call, Strike $5)
• Implied Volatility: 14.81%
• Delta: 0.1987 (moderate upside exposure)
• Gamma: 0.5878 (high sensitivity to price moves)
• Theta: -0.0005 (low time decay)
• Turnover: 5 contracts (moderate liquidity)
• Why? High gamma amplifies gains if the rally continues past $5.00, with limited downside risk.

2. WKHS20260116C4.5 (Call, Strike $4.5)
• Implied Volatility: 73.93%
• Delta: 0.6118 (strong upside bias)
• Gamma: 0.1618 (moderate sensitivity)
• Theta: -0.0028 (time decay neutral)
• Turnover: 0 contracts (low liquidity)
• Why? Near-the-money delta maximizes profit capture if momentum holds above $4.50.

In a 5% upside scenario to $4.993:
- C5 payoff: $0.00 (out of the money)
- C4.5 payoff: $0.493 (in-the-money)

Action Hook: Aggressive traders may layer C4.5 calls while hedging with C5 puts to capitalize on volatility asymmetry.

Backtest Workhorse Group Stock Performance
The backtest of WKHS's performance after a 63% intraday surge shows mixed results. While the stock experienced a brief positive momentum, the overall trend was negative. The 3-day win rate was 43.61%, indicating that approximately half of the time the stock price increased within 3 days of the surge. However, the 10-day and 30-day win rates were lower at 35.29% and 31.44%, respectively, suggesting that the positive momentum diminished quickly.

Bull Run Ahead or a Sudden Stall?
Workhorse’s surge faces a critical test as overbought conditions clash with execution risks. The stock’s $5.00 resistance and Tesla’s (TSLA) 1.03% sector-leading gains highlight EV market dynamics, but Workhorse’s fundamentals—cash flow, production scaling—remain under scrutiny. Bulls target $5.61 (52-week high) while bears watch $3.64 (200-day MA) for a reversal. Traders should monitor Q3 delivery metrics and regulatory updates on EV incentives. For now, the options market is pricing in a $5 breakout—investors must decide: ride the momentum or wait for a pullback to $4.00. Action Now: Watch $5.00 resistance for confirmation of a sustained rally—or a crash if it fails.