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.

Can You Play Deere For A Friday Morning Pop? It's Tricky.

Maybe, here is it's five day chart at the close on a Thursday. Yet a five day chart isn't going to help you in figuring out what is going to happen next.
Which way, up or down? Here are the slightly "out-of-the" money Calls as of a Thursday June 6th closing with one day to go in their trading life.
You can see more people like the upside than the downside? That's always the way it seems to be. Now here are some slightly "in-the-money" Puts.
The stock has gone sideways all week. The number of open contracts on these now "one-day" options are very light so that will have no effect on which way this stock will move. Recent history tells us that one day Friday reversals on this stock are a frequent occurance. Wait until it opens and moves in one direction and then get before it moves in opposite diection. Buy "out-of the-money" options and hope for a three dollar swing in the options. That's not much of a strategy and look at how few traders are playing that game. No one really is. Yet recent histories tells us one day reversals off this magnitude are a very common occurance. Is this a reckless trade? Yes very reckless. If however you are coming off a quick win from playing options on something else it might be something you might feel comfortable entertaining. Let's watch now and see how this situation plays itself. It tanked on the opening and quickly pulled itself up.
Here was the opportunity to play a reversal.
This all happened in the first hour of trading. Now here is how it was trading at 1:15 p.m.
Now the final one day chart.
Remember with option trading the rule is on Friday retail traders must be out of their option positons at 3 p.m.. Now the five day chart.
It's funny when you can double your money or make even more on a trading day when the stock really didn't do anything.


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