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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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Ford Puts

The stock has had a nice five day move.  Up until today that is.

Short term options on stocks in the ten dollar range need to be purchased in multiples of ten or more because commissions are crazy expensive on options in this price range. At least they are in Canada.. Here is a look at the price of Puts yesterday on a series of Puts that will expire tomorrow.
Bid $.04 or $4.00 per contract and ask $.05 or $5.00 per contract. They actually traded down to a low of $.02 on the day. Now here is a look at them today, which is a Thursday.
Was there a catastrophe drop in the markets to make this  happen?  Not really.
Trading options on ten dollar stocks with two days to go is full of surprises. I have talked about Ford options before. I will provide an update to this blog after the markets close tomorrow which is when these Puts expire.  Ford options have good liquidity and tight spreads. They often change materially in price in a one hour period of time .I also note that Ford and Stellantis are now trading for about the same price. G.M. did a major recent buy back program and is trading at a higher price this year than last year.  The trading patterns of all three of these companies get constantly bantered around with all of these tariff  talks happenings. Now here is what happened on Friday.  First the markets were down.
Now this. Friday's trading chart and a look at how the 10.5 series of Puts closed the week.

Look at the swings in it's price. Look at Ford's one day (Friday) trading pattern. Back at noon when the price of the stock was over $10.50 the holders on these Puts might have being biting their nails. 

If your new to this game don't try trading them on Fridays.

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