Rivian Sees Big Money Take Bearish Position in Options, Even as Stock Tracks Tesla's Gains
$Rivian Automotive (RIVN.US)$ saw financial giants take bearish options on the stock Friday even as the share price climbed to a six-month high, tracking gains across the electric vehicle industry, including its biggest rival $Tesla (TSLA.US)$.
Six unusual bearish trades were posted Friday, the biggest of which involved a buyer paying a $1.1 million premium for put options that give the holder the right to sell 200,000 Rivian shares at $17.50, below their current price.
Rivian's stock climbed 11.2% to $18.64 at 2:40 p.m. Friday in New York, poised for its highest close since January. The rally came as Tesla rebounded after its chief executive, Elon Musk, posted on social media platform X that the longer-than-expected wait on the company's full self-driving (FSD) technology that powers its electric vehicles, including Robotaxi, could lead to a better product.
Tesla shares tumbled Thursday after Bloomberg reported that the long-awaited Robotaxi debut that was expected to finally come in August, could be delayed by two months. Without confirming the delay, Musk said in post, "the better the FSD gets, the longer it takes to find interventions."
Despite the day's gains, money continues to pull out of Tesla and Rivian. Fund outflows from Tesla outpaced inflows by $77.7 million, while Rivian's net outflows total $11.7 million, capital trend data tracked by moomoo showed.
The bearish positions on Rivian options were posted on a day when 13 of 15 technical indicators found on the moomoo app are flashing early warning signals that the stock could be overbought, and the trend may be turning bearish.
Share your thoughts on Rivian and Tesla below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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