Mullen Automotive (NASDAQ:MULN) stock call options have been dominating the number of put options in the market for the month of January.
Talks of a MULN short squeeze have surfaced as analysts give Mullen Automotive stock a +7,000% price projection in the next 12-month period.
MULN shares have dropped since it peaked around $0.44 two weeks ago after the company revealed a number of risk factors that caused shares to tumble.
However, the amount of call options in the market compared to put options suggest investors remain bullish on where prices are headed.
Volume Distribution – MULN Stock Webull
On Tuesday, we’re seeing Mullen Automotive has 43.21K total call options versus only 290 put options (1:30hr prior to closing bell).
MULN stock call option volume went as high as 194K during the first week of January.
That same day, put options weighed in lightly at 12.7K compared to the latter.
However, shares have come down from its bull run earlier in January.
Shareholders suspect naked shorts are at work, keeping shares from rising despite the heavy demand.
MULN has a current short interest of 13.15% (updated daily).
This means the company is shorted despite majority of sentiment being bullish.
Heavy buying pressure will be the trigger MULN stock needs to create a disruption in the market.
Where is MULN Stock Going?
If MULN is able to break above $0.294 then shareholders can expect the stock to retest $0.30-0.31 per shares.
A break below $0.294 will send shares down to retest $0.28 and may go as low as $0.26.
If retail investors are able to build momentum through buying pressure, MULN shares will continue to rise.
Positive news may also trigger big buying pressure from institutional investors long on the company.
Today, out of 173 financial institutions investing in Mullen Automotive, only 1 is short with 172 being long, per Fintel.
In December alone, 18 financial institutions purchased shares of Mullen Automotive.
The consensus for Mullen Automotive today remains a strong ‘buy’.
Related: MULN Stock Price Is Predicted to Soar +7,000% This Year
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