Put Traders Cash in on Rivian Automotive Stock Crash

The stock is on track for its 10th-straight daily loss today

Deputy Editor
Dec 22, 2022 at 2:12 PM
facebook X logo linkedin


Subscribers to our Schaeffer's Expiration Week Countdown Bulletin service scored a 113% profit with our recommended Rivian Automotive Inc (NASDAQ:RIVN) December 16, 2022 29-strike put. Below, we'll dive into our bullish stance on RIVN and how the trade played out so quickly. 

At the time of our recommendation on Friday, Dec. 9, we highlighted a small bear flag that was forming under Rivian Automotive stock's support/resistance level. That level also coincided with the $29-$30 pivot that rejected a retest on the same day of our recommendation, while a the equity's short-term moving averages were rolling over and threatening to act as resistance.

RIVN Chart December 222022

What's more, shares of the electric vehicle (EV) maker were rejected at the December peak call level, and a breakdown through the 27.50-strike was predicted to flush the stock's price to the 25- or even 22.50-strike, as it moved to break down through the peak put area. 

We also noted that an unwinding of options traders optimism could send the shares lower. At the time of our recommendation, RIVN sported a 10-day call/put volume ratio of 2.49 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranked in the 94th percentile of annual readings. 

That shift was realized, as RIVN's 10-day call/put volume ratio now sits at 1.32, which is higher than just 58% of reading from the past 12 months. 

Rivian Automotive stock is pulling back today alongside the broader market and was last seen down 8.6% at $19.22, putting it on track for its 10th-straight daily loss. These losses accelerated after the company paused plans in Europe with Mercedes-Benz. Short sellers are cashing in on the crash, after a plethora of hedge funds bet against megacap growth stock like Tesla (TSLA), Amazon.com (AMZN), and Meta Platforms (META). Year-to-date, RIVN is down 81.7%.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI