Worksport Soars 23.85%—What’s Fueling This Volcanic Eruption?

Summary
• Worksport (WKSP) surges 23.85% intraday to $3.79, erasing 2025’s losses in one session
• $16M annual sales pact with US customer triggers production ramp-up
• Short interest drops 14.86% as 2.73% of float remains sold short

Worksport’s stock erupted on news of a $16M annual sales agreement, propelling it from a 52-week low of $2.44 to a 23.85% intraday gain. With a 76.83% turnover rate and a dynamic PE of -1.54, the market is grappling with whether this surge reflects sustainable demand or a speculative frenzy. The stock’s 115.8% YoY sales growth and recent $1.6M hard-cover order add fuel to the fire.

Electric Pickup Pact Ignites Production Hype
The 23.85% surge stems from a long-term agreement with a US customer expecting $16M in annual sales, announced September 19, 2023. This follows a $1.6M hard-cover order and a $1.6M shipment from the West Seneca factory. The news validates Worksport’s strategic pivot to EV-compatible products like the SOLIS solar cover and COR battery system. With 15.43% insider ownership and 2.49% institutional holdings, the market perceives this as a catalyst for scaling production and validating its EV-era positioning.

EV Sector Mixed as Lear Drags, Worksport Defies Trend
The Motor Vehicle Parts & Accessories industry, ranked 29th out of 32 stocks, shows weak momentum. Sector leader Lear (LEA) fell 1.20% intraday, contrasting Worksport’s surge. While Worksport’s P/B ratio of 1.81 suggests reasonable valuation, its -3.17 P/E highlights unprofitability. The sector’s average ESG score and low dividend yields further underscore its speculative nature, making Worksport’s AI-driven narrative stand out.

Leverage 76.2% Gamma and 35.63% IV in WKSP20250919C4
• 200-day MA: $2.21 (far below current price)
• RSI: 29.31 (oversold)
• MACD: -0.1123 (bullish crossover near)
• Bollinger Bands: Price at $3.81 vs. upper band $3.75 (overbought)
• Short-term bullish trend confirmed by 5.7% Q1 relative strength

Key levels to watch: $3.75 (Bollinger upper), $3.24 (20-day MA), and $2.73 (lower band). A 5% upside to $4.00 would trigger the WKSP20250919C4 call option. This contract offers 76.2% leverage and 35.63% implied volatility, with a delta of 0.2849 (moderate sensitivity) and gamma of 1.1585 (high sensitivity to price swings). Theta of -0.0055 indicates minimal time decay, ideal for short-term plays. At $4.00, payoff would be $0.00 (strike) + $0.00 (premium), yielding 0% return. However, gamma’s 1.1585 suggests rapid delta shifts if the stock breaks $4.00.

WKSP20250919C4 stands out for its high gamma and leverage, aligning with the stock’s volatility. Aggressive bulls should target $3.75–$4.00 range, using the call option to capitalize on a potential breakout. If $3.75 holds, consider a 50% leverage ETF (if available) to amplify exposure.

Backtest Worksport Stock Performance

Ride the EV Tonneau Wave Before Gamma Gamma Gamma
Worksport’s 23.85% surge is a high-risk, high-reward play driven by EV production bets and speculative momentum. The stock’s 115.8% YoY sales growth and $16M sales pact justify short-term optimism, but its -3.17 P/E and 15.43% insider ownership demand caution. Watch for a $3.75 close to confirm the breakout or a retest of $3.24. Sector leader Lear’s -1.20% move highlights Worksport’s divergence. For aggressive traders, the WKSP20250919C4 call option offers a 76.2% leverage play, but only if $3.75 is breached. Position sizing and stop-losses are critical in this $20M market cap stock.