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Archer Aviation Shares Fly, Whale Makes Huge Call Trade
In the post-Trump victory period, the market flew off the hinges for six sessions, with indices and stocks hitting all-time closing highs. Some stocks flew on general positivity. One smaller firm saw its market cap fly: $Archer Aviation (ACHR.US)$ soared 40% in five sessions by Tuesday. The flight technology firm aims to build electric verticle take-off planes like helicopters.
Moomoo captured an unusually large options transaction on the underlying ACHR stock in the past week. The screenshot below shows someone made a trade for 107,770 contracts of $5 Calls on ACHR, for a contract price of $0.35, with an expiration date of January 17th, 2025- about 66 days away.
That goes for a total premium cost of $3.77M, when the stock's underlying price went for $4.51/share. The stock price flew after the election and in the lead-up to a reaction to the firm's earnings report on November 8th. The firm reported a Q3 loss but a lower loss than estimated by analysts. The loss was nearly 30C a share, but analysts estimated it to be 31C, and the firm's past three-quarter results show that the loss is narrowing, according to moomoo.
Based on the call, the price must be higher than 5 by Jan 17th. If the firm's next earnings date is around three months from its most recent one, it will report on February 8th, three weeks after the option contract closing date. Among other goals, the firm has pitched an electric vehicle that could fly customers from FiDi to Newark International.
Of course, we know in the moomoo office that it is not a very far trip. Currently, an Uber from the Charging Bull statue just south of Wall Street to Newark is just about 33 min.
Meanwhile- there are other options. A bike ride will take about an hour and a half if you don't mind hugging the side of a freeway. A verticle takeoff vehicle that uses gasoline can also get you there in about 5 minutes: a standard midtown to EWR helicopter trip goes for $195, according to the first result on Google.
For Archer to one day reach profit, it would have to get its business off the ground- literally. The $1.36B market cap startup went public in 2021. Its stock price has fallen 53% since it first launched, but the firm has a multi-step plan to get its electric vehicles flying.
One aspect is legality. Luckily for the firm, the FAA released a powered-lift Special Federal Aviation Regulation (SFAR) that makes way for electric vertical take-off and landing, or eVTOL. Chief Adam Goldstein said in a release that the regulations were aligned with his firm's training and goals for commercial operations. The first 'Midnight' flying machine has not received a flight test "for credit," despite an advertised 400 successful flight tests by September this year.
“We applaud the FAA for releasing the SFAR ahead of schedule as it represents a tremendous milestone for our country and the eVTOL industry," Goldstein said. "Now, Archer has a clear roadmap to pioneer eVTOL here in the U.S. Our team is full speed ahead in our ongoing partnership with the FAA as we work towards commercialization as soon as possible.”
ACHR has a Call Put Volume of 96:4, with 79K Calls to just 3.2k Puts. Based on moomoo's market position overview, the vast majority of positions held on the stock are in the money, with an average cost of $3.64.
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Kevin Travers
Moomoo News and Community Manager
Moo moo News and Community Manager, NJ Office.
Fmr CNBC contributor, reporter/investor/trader
Posts do not represent mm
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Dan’l : I meant to go long term with $Archer Aviation (ACHR.US)$ just before that NOV 07 earnings call, but I just couldn’t resist continuing to trade it like a lame horse with bad teeth… best to just let it rest, ‘til it becomes more predictably volatile (e.g., gained just six shares, while risking it flying off without me ~;-)
Kevin Travers OP Dan’l : Even horse with bad teeth can still get you from FiDi to Newark hahaha
104247826 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
54088 FROM RWS : 3299
102181510 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Adrianlim90 : 1
Dan’l Kevin Travers OP : “Giddyup, Midnight!”
Jihad Ashtawy :
Dan’l : Heeey @Kevin Travers @Trader’s Edge
Here’s why, in re Archer’s sudden drop. I sold early, and bought (much) more, hopefully offsetting potential dilution…
Reuters
$Archer Aviation (ACHR.US)$
4.250
-8.80%
Archer Aviation Inc - May Offer, Sell Shares of Class a Common Stock of up to $70 Mln From Time to Time
Luxury coach : Great
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