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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 rebound. Now this, a quick look at two series of it's "out-of-the-money" Calls. You can see when they expire, how much they cost ($1.01 for example means one hundred and one dollars U.S.)
The January Calls have a higher striking price than the shorter term Calls and that is why they cost about the same. One is a bet on Lucid going above $6.00 in the short term and one is a bet about Lucid going above $8.00 in the longer term. Some option traders just don't like Lucid. It's not really one of my favorite stocks in the $5.00 and $6.00 dollar range to be playing options on. See my most recent blog on Nio Calls. One final observation. The concept of "stop-loss-orders". Some traders using this technique would have lost their shirts when this happened. There are so many different ways to approach market trading. ****Lucid on the next day (Thursday) opening. It's journey continues on.

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