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.

Ford Down Seven Cents On The Day Going Into The Closing

Is this an opportunity? Ford nearing the close on a Wedesday with Call options on it that expire in two days. First the five day and then the one day chart.
Now look at how the twelve series of Calls traded today towards the end of the day.
Now a different look at the same thing.
Note they closed the day before at $.23 cents and hit a high of $.39 cents. That was a trade in itself. Now what? Well the chart looks kind of ugly as it has not tested it's previous lows so jumping in to play the short term reversing upwards looks like a scary proposition. That plus buying into options that expire in two days often quickly lose half of their value if the stock ever decides to go sideways for a day. Most option traders overlook the potential of succeessfully of trading Ford options. Let's see how this situation plays itself out. I have talked about situation just like this several times before. One other note. Ford sales were up 7% last month, then to be revised to being up 11.2%. Is that a trend we can expect to see going forward? Probably. Here also are how other auto stocks traded on the day. It was a mixed day.
** What do I find unusual? The open interest number versus the number of contracts traded on the day. It tells us that not many option players are trying to daytrade it. Many option holders are stuck in them at higher prices. It's trading patterns are fickle. So many option traders pile into Tesla instead and hope for $5.00 or $10.00 price swings. That's a different game. One more topic is the topic of Ford Calls one week out. Do you need that much time? Not really. Yet think of the downward pressure that the next week out 12.5 series of Calls have indured. Here they are.
Look at the interest that they are attracting. News the next morning June 13th.
This is news which will be quickly discounted. Now a comment about this chart. It doesn't really scream at you to be considering the upside.


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