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A Random Walk In The Park On A Monday Morning. A Caution. Monday Mornings Are Often Not An Option Players Best Friend

Let's start with this. It's now 10:26 a.m. A bet on Caterpillar rebounding by the end of the week. There are no takers. Why have to watch the screen for the next four days in agony waiting for a rebound which if happens is just a "break even trade"? But Wait. I made a mistake. The market is actually now down 668 points. What else can we look at? Interactive Brokers. These kind of stocks always do poorly on days with the threat of margin calls. Yet there is something interesting about the printout I am about to show. It is that these options are "one-month-out" Calls. These longer term options trade differently than short term options. (these options trade in one month intervals). If the stock we are following stops it's freefall the value of the options will nudge up ten, fifteen or twenty percent. A seven dollar option Call might creep back up to $8.00 or $9.00 at which time it could be sold. In contrast with a five day option a slight reversal in ...
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Earning Reports, " Rivian" And Next "Lucid " To Soon Report."

Vroom, vroom, vroom. Well they are electric. They don't vroom that much and that's a good thing. Rivian is not going to go away and their trucks of many designs are out working everyday.
While Rivian is not going to go away it is still burning through a pile of cash and is planning a shut down of one of their lines for the retooling of a more affordable model sometime this year. Sales seem to be plateauing. That's not a good thing for start up companies to be worrying about. Here is it's current position.
Trump is not being kind to electric automobile makers. China has labor costs of like $6.00 an hour or less and is selling their electric vehicles all over the world. Why, one might ask is North American so focused making consumers pay for their grossly overpriced product offerings? This can't go on forever. Now this.
Rivian had a few bright spots last year like when V.W. stepped in to be a bigger partner of sort however it's lastest quarterly earnings report is not really enough of a cheer to get excited about. All that plus buying stocks or options on stocks in this price range always seems to be a struggle. Might it sell off to five or six dollars or might it jump to $20.00? Three years ago it was trading at $60.00.
The one plus it does have is that is known to bounce on unexpected good news. Yet it's difficult for option players to play "good-news" bounces. The "good-news" effect often gets baked into the equation within seconds. Then there is the stock Lucid. Is this a better E.V. play? Here is it's three year chart and it's five day chart. They are both ugly.
Earnings come out Febuary 25th. Most people watching what's happening in the E.V. space know Lucid seems to be surviving because of a strong backer. That could be a good thing.
Here are how the December 18th Call options. If things ever change for this company or for this industry could this stock make $4.00 mark before Christmas? So many option traders are burnt out trying to play the upside on this one.
Holding longer term Call options is an experience most option players should learn to develop. I have talked about the Ford Motor company's long term Call options before. If there are profits to be had sometimes long term option positions should be sold only after only a 30 or 45 day hold. Ford dived recently on an earning's report and it's long term Call option holders mostly had profits on their position that could have been sold and later repurchased at a lower price. Rivian and Lucid both have financial backings going forward which is a good thing. Short term volatilty is to be expected. Do you think it is now time to go for a ride?

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