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Showing posts from October, 2021

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News On Rivian

Rivian needs money again. The stock dropped on the opening today, a tuesday, then stabilized and then dropped again towards the closing. A drop of 18% in one day is pretty crazy and the timing happened after previous snippets of good news. Managament is well aware of the importance good news just prior to the announcement of these type of share offerings. What good news? Well last week Rivian raised delivery projections for this year after its second quarter numbers exceeded expectations. They also recently came out with a new R2 model , an all-electric SUV with a lower price tag. Last year Rivian lost $432 million dollars on 42,277 vehicle deliveries or $10,200 per vehicle. A new question. Why even try to outsmart what's going to happen next? In a way it was kind of sneaky for management to flood the market with additional shares when the stock was trading on an upward blip. Also consider this. Offering new shares in some ways is a sign of weakness. What happened the next day, ...
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Ford - An Earning Report

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Ford is going electric, that's the buzz. We all know the story. Earnings just came out on the stock and the Call options jumped on the opening. If you were playing options you had to get out just after the opening. With option plays on earning reports that's usually the way to best way play them. First, I will show the prior day's action. There was a gap down on the opening and 94 million shares traded. That's a large number. People were cashing out after recent good times. Now here is a chart of Ford the next day and here is how two option series traded. Buy in at the close and sell out just after the opening. Look at how high each series traded up to just after the opening. The earning numbers were not all that great but it's the buzz about going electric. Ford is one of the better stocks out there to play earning report releases. ** Scroll up to the upper left and read my most recent blog on MacDonald's earning report.
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McDonald's And An Earnings Report

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I was sitting in the drive through line yesterday at McDonalds redeeming a free coffee sticker won from being there a few days prior. It was a long line up for mid-afternoon. I am not a fast food junkie. I found myself thinking of how the Domino Pizza stock was on a terror for much of last year but not so much now. When we were all locked in last year everyone was ordering their pizza. I was also wondered if they would now accept my little free coffee sticker as it was only thumbnail size. Then when I pulled up to the drive thru window I hit a patch of bees. Apparently for whatever reason they were enjoying being at that window. They gave me my free coffee. Boy it was busy there. I note in this option series that there were only 292 open contracts. That small number suprises me. Why didn't more option players see this coming?
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