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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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Options On "One Dollar" Stocks - 0ne Stock In Particular

Kind of a dumb topic however it's real life unfolding as we speak. How is a little marijuana company named Canopy Growth doing and what might change in the companies near term future? Here is a chart of it's stock price. I don't need to ask Ai what the challenges are for a company like this going forward. Here are two or three big ones. A company can't keep going on operating if it keeps losing money. Others in the same industry may be feeling the same pressures. If it also has an overeseas operation which was meant to bring in money and it is not. That's another concern. What are they learning from the experience? Are new opportunities opening up? Once again it's a learning curve for everyone, including even people like watching it from the sidelines. I don't follow it all that closely but it's fair to say they are in challenging times. Now this, a look at it's one dollar Call options that expire in January 2027. That's a long time away.
Why would anyone buy these options? Why not just buy the stock instead? Stocks don't expire, options do. Now look at it's one year chart. What do you see?
I see three spikes up, all induced by Trump talking about the need to change the laws about how marijuanna is classified.
So the question now is what are the odds of another spike upwards sometime this year? If it does and you see these options jump up in price just get out on the spike if you own any of these Call options. (Existing shareholders could be exhausted by this experience). Just get out an ask questions later. To simple a strategy you might say? Perhaps. Let's watch this situation and see how it unfolds. Here is oneother stock which has the same kind of story.
Now for a big cautionary note. I don't own positions in either of these two series. Why? Well one reason is that I can't afford to own everything I like.

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