Why Not To Buy Not Rivian Calls With Two Days to Go?

It's obvious right? If you mess up and the stock opens the wrong way you only have one day for a rebound. Why put yourself in that position? Others might be in the camp of saying why not go for a fifty percent rebound on Thurday's morning opening. The stock sold of on Wednesday on very little volume. A morning pop is possible. The stock has being strong as of late. Here is it's five day chart. Now this, the seventeen series of Calls that expires in two days. They do look cheap after hitting a high of $1.55 on the day. If we look at a 30 day chart we will see that the stock is still in an uptrend. Why not look at the Call options one and two weeks out? Here are the seventeen series of Calls one and two weeks out They would be much safer to play and I will check in on these ones at a later date. So what happened on the Thursday opening? Let's switch gears for a moment and look at how Roku, a much higher priced stock opened and look at how their Call options moved.

First Solar

Remember in previous blogs I made mention of the EV industry experiencing a bit of a stumble over range anxiety issues. Then Tesla launched their new truck last week and reported they had a million orders for it. Suddenly the range anxiety issue seemed to disappear. Well the same thing was happening to the solar power industry. It was being reported for a few weeks or so that rising interest rates was keeping new customers from buying solar panels and companies from building out solar powered projects. First Solar sold off yesterday. Here is it's one month chart and a 2:32 p.m. look at the 155.00 and 152.50 Puts. The volume of trading on them was next to nothing.
Now the 155 and 152.50 Puts in the afternoon.

 Now here is the thing. When a stock starts to fall who knows when it will stop falling.  Other stocks like Netflix, Deere and Snowflake also trade like this. Big moves in short periods of time. Now look this chart. It's two days later.
Look where the stock is at now. It's below $145.00.  The 155 Puts are up 400%. Now for a one day chart to see where it closed today, December 7th
Would now be a good time to look for a reversal? Here is it's year-to-date chart.
This is a chart which could go both ways. It's 82 percent owned by institutions and can move on no apparent news, or news that retail players can't sniff out. Back in April it had a nice move.. All I am really trying to say is that option traders look for the breakouts on stocks like this. The light volume of option trading part of this story doesn't bother me. It's actually something I  appreciate. I don't like trading options on stocks like Apple where everyone and his brother is following the same action with a sense of confidence.. First Solar is known to surprise in both directions. * A Friday morning report.
A pop. Now here is the proof in the pudding. Look at the number of contracts traded in this series of Call options.  To be blunt, the big boys are in on this action. Who else trades options in blocks of 100?

Now look at it's chart a few weeks later.


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