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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 Calls have jumped from $.03 Cents per contract to $.06 Cents per contract. Much of this has happened in the first 39 minutes of trading. Take your money and run. Dips on the opening sometimes rebound quickly and then peter out. We just saw how taking profits on Nike Calls on a Monday morning was the way to go. Here is how Rivian closed out the day.
Always take profits on Thursday morning options if you got in just after the opening on "next-day-to-expiring", "out-of-the-money" options positions if you are able to cash towards the tail end of the first hour of trading. "Always" is a strong word but one worth repeating in situations like this. The nice thing about plays like this is that they are most usually based on solid news events, no just rumors.

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