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News On Rivian

Rivian needs money again.
The stock dropped on the opening today, a tuesday, then stabilized and then dropped again towards the closing.
A drop of 18% in one day is pretty crazy and the timing happened after previous snippets of good news. Managament is well aware of the importance good news just prior to the announcement of these type of share offerings. What good news? Well last week Rivian raised delivery projections for this year after its second quarter numbers exceeded expectations. They also recently came out with a new R2 model , an all-electric SUV with a lower price tag. Last year Rivian lost $432 million dollars on 42,277 vehicle deliveries or $10,200 per vehicle. A new question. Why even try to outsmart what's going to happen next? In a way it was kind of sneaky for management to flood the market with additional shares when the stock was trading on an upward blip. Also consider this. Offering new shares in some ways is a sign of weakness. What happened the next day, a Wednesday? It rebounded. Call option holders who bought in on Tuesdays closing were rewarded.
Here is it's one day chart.
One dollar moves in one day on short term options can really move the needle on them. Stop,stop,stop. Lets look at Rivians one year chart.
Imagine catching the Call options on this stock last November or the Puts just after Christmas? Now this. Two years ago Rivian lost about $30,000 for every vehicle it produced and the year before that $130,000 per vehicle. Do you think next year this stock could break even? Imagine the party mode this stock would be in if that ever happened!. Have a look at what the January 15th 2027 16 series and 20 series of Calls cost.
Now a look further out at the what the January 21st 2028. series of Calls cost.
Remember how Caterpillar doubled in price over the last year all the while under a cloud of tariff worries? Could this be the year or next year be the years Rivian doubles in price? Option traders busy daytrading short term options must also learn to think about the future. One final point. The next chart shows you once again the January 16 Calls. This time we are one hour into Thursday's trading session. Rivian is up in the morning trading. Can you see how much these options have jumped?
They are up $.55. Options which expire six months out in time don't usually jump this much this quickly.

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