Workhorse Group Skyrockets 72%—But What’s Driving the Surge?

• WKHS soars to $5.009, a 72.1% intraday gain, hitting a peak of $5.61.
• Volume explodes to 47.98M shares, with turnover rate surging to 508.89%.
• No direct company-specific news reported, contrasting with sector headlines on EV tech and Tesla’s market shifts.

Today’s meteoric rise defies immediate catalysts, sparking speculation over technical momentum or hidden institutional activity. The stock’s 52W high of $28.125 looms as a psychological ceiling, while sector peers like Tesla (TSLA) drift modestly.

Mysterious Catalyst Sparks Unprecedented Rally
The Workhorse Group’s explosive rally lacks a direct news trigger. Absent any company-specific updates or product announcements, the move appears driven by speculative buying or algorithmic momentum chasing. Technical traders may have capitalized on the stock’s proximity to its 30-day support ($0.97–$1.01), but the surge pushed it far beyond traditional valuation metrics. The -0.574 PE ratio underscores its speculative status, with fundamentals playing no apparent role in the surge.

Options Alert: High-Volatility Contracts Spotlight WKHS’s Bullish Momentum
Bullish Technicals:
• RSI: 95.06 (deep overbought, signaling exhaustion risk)
• MACD: 0.396 vs Signal Line 0.185 (bullish divergence)
• Bollinger Bands: Current price exceeds upper band ($2.70), suggesting breakout potential.

Aggressive traders should focus on near-term expiration contracts. Key resistance: $5.61 (today’s high) and $6.00 (psychological barrier). The 200-day moving average ($0.97) offers no support at current levels.

Top Picks:
1. WKHS20250718C5 (Call, Strike $5.00):
- Delta: 0.18 (low sensitivity to price changes), Gamma: 2.57 (high price responsiveness),
- Implied Volatility: 14.12% (moderate), Leverage: 490% (high reward/risk).
- Why: Near-the-money strike with ample liquidity (Volume=10) and theta decay (-0.0064), ideal for short-term bullish bets.
- Payoff at $5.26 (5% upside): Max gain $0.26/share.

2. WKHS20260116C4.5 (Call, Strike $4.50):
- Delta: 0.68 (moderate sensitivity), Gamma: 0.20 (limited responsiveness),
- Implied Volatility: 50.39% (high), Leverage: 5.16% (lower risk).
- Why: Higher volatility and in-the-money status (current price > strike) reduce time decay risks, making it a longer-term hedge against sustained momentum.
- Payoff at $5.26: Max gain $0.76/share.

Warning: Overbought RSI and lack of fundamentals make this a high-risk trade. Exit at $5.61 resistance or RSI retreat to 85.

Backtest Workhorse Group Stock Performance
The backtest of Workhorse Group's (WKHS) performance after a 72% intraday surge shows mixed results. While the stock experienced a significant positive surge, it failed to maintain the momentum over the longer term. The maximum return during the backtest was only 0.07%, which occurred on the day of the surge, indicating that WKHS is prone to volatility and may not sustain large intraday gains in the longer term.

Bull Run or Bubble? WKHS Faces Critical Technical Tests Ahead
Workhorse’s surge leaves investors at a crossroads: Is this a sustainable breakout or a speculative bubble? The RSI at 95.06 warns of exhaustion, while the MACD’s bullish slope hints at further gains. Bulls must breach $5.61 to sustain momentum, with $6.00 as the next hurdle. Bears will target the 30-day support ($0.97–$1.01) if profit-taking kicks in. Monitor Tesla (TSLA)’s 0.9% gain as a sector benchmark—its muted performance underscores WKHS’s outlier status.

Action Alert: Fade the rally if $5.61 fails, or chase calls like WKHS20250718C5 into a close above $5.50.