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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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Netflix And It's Ten For One Reverse Stock Split

No longer is Netflix a $1,000 stock. Now the common man can buy it. That's the new logic. Today Netflix is now trading after a "ten-for-one-reverse-stock-split". Netflix was up $8.51 last week when it was trading at it's old level of over $1,000 per share. Perhaps the street was buying in last week on the hopes that a new wave of buyers will be buying in at this weeks newly adjusted price. Now this, it's five day chart.
Now this weeks Call and Put options an hour or so into the opening markets.
Whatever happens it's not going to be a comfortable ride. Maybe it could go both ways.
Now it's end of day readings.
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Here is how the markets closed the day.
The now current question is which way will this stock trade on an upward day? One unusual factor is that the open interest in the Puts far outweighs the open interest in the Calls. To me that's counter intuitive. To me that looks like trap for all the Put holders. Usually there are more Calls than Puts outstanding. I don't like any of this because the market makers are well aware of this heightened interest in this "once-in-a-blue-moon" occurance. To me it feels that what should happen in most situations is now not going to happen. Like they often say on the "Dragon Den", "For that reason I am out". Let's watch to see what happens. I will track thee options until the end of the week. What do you think is going to happen? Now Tuesday morning. Logic has returned. The Put holders are getting squeezed.
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Tha Calls are up and the Puts are down. That is no suprise. Might the interest now shift to the $112.00 Puts?
600 plus point drops this early in the day might pull this stock back down. To be continued. A look 58 minutes later.
$1.30 has gone to $163.00. Now this at 2:20 p.m. The game has changed again. The D.J.I.A is rebounding.
The 110 Calls we were looking at back at $2.28 at 10:09 a.m. this morning are now at $4.64. What happened? Well the DJIA was down 634 points back at 10:14 a.m. and it is now down only 275 points.
Now let us skip a day and catch Friday's action. First at look at it's new chart.
Here is how one series of Calls and Puts closed the market on Thursday. It's really all a game controlled by the option markers as to which way the stock is going to trade. On Monday a whole bunch of Put holders got burnt and todays action (Friday) will most likely be of trying to keep this stock steady to let as many Calls and Puts as possible disapoint.
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Let's see what happens. Here is Friday's trading.
Who were the winners on the week? Look at it's five day chart.
The winners bought Calls before the closing on Monday and sold them the next day and then Puts late Tuesday and sold them before 3:00 pm. on Friday.

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