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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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The CarMax Story Continues.

Yesterday holding Calls on this stock turned out to be a walk in the part. See yesterday's chart. Today is a different story. A potential lawsuit is brewing. It is claimed that management provided false guidance. I don't think that this case is going to gain much traction.
Managment said.
So the Calls we were looking at yesterday took a hit and here is how it's afternoon chart is trading.
Rather than looking at the 47.50 Calls we were looking at yesterday we should now be looking at the 45 series of Calls. That's the luxury that "in-and-out" short term daytraders have. Now the 45 series of Calls options that offer leverage on one dollars moves and not the 47.50 series. Here are two different series to look at, one series that expires a week Friday away and one series that expires on November 21st. Next weeks Calls would be cutting the timeline to short.
But here now is the problem. The happy, zippy little chart pattern we saw in the last three of four days is now broken. The fresh lawsuit news is a new minor annoyance.
Yet another problem is that I don't like trading options on stocks in this price range. I like better options on $5.00 and $10.00 stocks and options on $100.00 priced stocks and higher. Here is it's closing day reading.
The October 17th Calls are still ten days away. Let's follow this and see how it turns out. Now here is Wednesday's closing.
There was further weakness. To be continued.

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