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Lucid. Options On $6.00 Dollar Stock With Two Days To Go Are Difficult To Trade

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...
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$1.00 Stocks Can Go Bankrupt - Polestar

 There is a danger in playing one dollar stocks. That plus they can be boring to watch. Many look interesting but owning them is a gamble. Here is Polestar. 


Here is it's ten year chart.
It's Swedish owned. Like many startup electric vehicle companies it's debt structuring is complicated and their focus on keeping their shareholders happy is low on their priority list of things to do. That's understandable. They also make some of their vehicles in the U.S. so the tariff issue is not going to be an issue. Their vehicles look kind of boring but that's because they are Swedish inspired. Money was waisted a few years ago on "super bowl" advertising. Here is how they are  currently doing. Things look better but not enough to reverse the negative sentiment hanging over it's share price. The path forward to positive earnings is uncertain as all electric vehicle manufacturing companies are facing challenges. In China some analyst say that it's a race to the bottom. 
Is ramping up productions going to be the magical solution? The answers is not really. Economies of scale don't really happen until production numbers are increased  like tenfold. There are no options to play on this stock. This stock truly is a puzzle. Rivian  and Lucid are two other electric vehicle companies sharing this space but both have backers who are pouring money into them in the hope of better things to come. I would buy Polestar at $1.25 but not at $1.00. It needs more good news to make it go.
The short interest in this stock is something like only 2%. Do your own research. If this stock starts to take off existing shareholders who bought in at higher prices might decide to average down. *** One dollar stocks are one dollar for a reason. They are a risk!

**** A July 10th update.

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