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Lucid Had Another Scare

Look at this big bump in the road. A spike down to $2.45. at 1:44:59.p.m. on a Tuesday followed by a full rebound. It's never good news when things like thus happen. There were rumors of it going into bankruptcy which the company quickly denied. Was someone purposely spreading this rumor for self serving reasons? From my point of view the uncertainty caused by this occurance adds an extra layer compexity to the long journey that this company endured. Will institutional traders worried about liquidity issues and the preservation of capital change their attitudes on this stock? Traders, for reasons I don't understand seemed to quickly brush this incident off. The company has recently raised more money and has cash on hand. Production numbers in 2025 were somewhere around 16,000 units and are now estimated to be around 21,000 units in 2026? This nervous dip muddies up the waters around this company. In the bigger picture this stock offers investors an opportunity to bet on a rebo...
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Why I Don't Like Trading Options On McDonald's

Same stores sales are up 6.8% in Q4 2025. With inflation and rising labour and food costs, 6.8% is not really very much. Then the rumours about 2,000 or so more outlets opening up this year are the same projections that we heard over the last few years. What they always forget to tell us is the number of their restaurants shutting down. Why might some be shutting down? Well maybe a new highway going is diverting some of the road traffic off in a different direction or a neighbouring high school is closing down. Four years ago they lost some restaurants in Russia. Now look at this.
Next this.
McDonald's trading on the close back on Thursday. It had a good day. There is new talk about a bigger and better "Big Arch" meal with a bigger burger with a better tangy and creamy sauce. Now this.
Today's one day chart. It's Monday. Now it's one day of Call option trading.
Look at the volume of trading on these Call options. Over 6,000 contracts. The open interest in these series on the previous day was only 315. This I think was "Covered-Call-Selling" meaning instituational trader's honing in on the markets and seeing weakness in the markets. Selling the Calls on the stock's somewhat strong opening and buying them back for slightly lessor amounts of money as the day progressed. Buying Puts would have accomplished the same thing however selling Calls against stocks you already hold is an equally convient way to make it happen. Now let us wait and see what the open interest numbers are on tomorrow's opening. If the numbers are low that's exactly what happened.
Now this on Tuesday morning one hour into the trading session. Look at the trading in this same series of options. Only one option contract has traded.
The market's option bandits are off to other adventures never to look back again. Going forward two days, look at how this action has subsided.

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