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Micron Technology. A Nervous Market With Big "One-Day" Option Swings

It's Friday July 31st. Look at this stocks one and five day charts and then look at how one series on Puts which expire today struck gold. First it's one and five day chart. ... I don't know much about this stock however this blog follows the last blog on the topic of buying Puts on spiking stocks. Look at how this one series of Puts below has reacted on this one day selloff. Had I picked a series of Puts further "out-of-the-money" the gains would be even more remarkable. Look at the low of the day which happened on the morning spike and look at where the option is at now! Yet wait the game is not as easy as it looks. How often does a stock drop that much in one day? Not very often. Look at how Apple dropped like 30 points after an earning's release and this series of "out-of-the-money" Puts merely doubled. It could be argued that risk involved in making the trade outweighed any potential reward. If we now go back to our friend, the stock name...
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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. It's tough for a stock to go up when you are still years away from making any money.

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