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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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Wednesdays Can Bring Market Reversals, Once Again My Focus in Looking At Playing Short Term (Less Than One Week) Options

Two stocks and the activity on their Put options today.
Only 17 option contracts traded on them today. Traders are afraid to trade them. Wednesdays are often the best days of the week for market reversals. The second stock is one I also recently talked about, Netflix. Here is today's action.
The stock is down however if you look at the chart the drop is barely noticeable. Or said differently, price changes like this are a near regular occurance.Yes there was light to moderate trading in this series of slightly "out-of-the-money" Puts. * The concept of playing short term options on stocks priced in this high price range is best suited for day trading only. It is advised traders do not hold onto overnight positions to avoid the risk of getting caught on the wrong side of a trade. That plus the time value element of the equation becomes more of a worry, with in this case only two day to go in the life of these options. Getting stuck going the wrong way will be fatal. Wednesdays give you the luxury of trading interday without much of a concern for the "time value" issue. In contrast, Monday and Tuesday option trading tend to be priced more defensively and make less profitable the exercise of trading one day price swings which are less than ten dollars. It's all kind of difficult to explain. ..
Once again, Wednesdays are often the best day of the week to look for interday market reversals on options on high priced stocks.

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