Rivian Sees Big Money Taking a Bearish Option Position as Stock Climbs
$Rivian Automotive(RIVN.US$ saw big money take a $2.68 million short call position on the stock as it surged to a four-month high. The steep climb came after the company said a day earlier that $VOLKSWAGEN A G(VWAGY.US$ will invest as much as $5 billion in the electric vehicle maker.
The short call position was posted at 9:42:25 a.m. in New York Wednesday. The seller wrote call options giving the holder the right to buy 600,000 Rivian shares at $20 each by Jan. 16, 2026. That boosted the volume on the contract to more than 10,298, from just 280 a day earlier.
That strike price matches the latest target price for the stock set by Wedbush, which calls the Volkswagen deal a "game charger."
Rivian shares climbed 30% after the company said a day earlier that Volkswagen will initially pour $1 billion into the company and as much as $4 billion in additional investment, helping fund the EV maker's operations through the ramp of R2, "enabling a path to positive free cash flow and meaningful scale."
The two companies will form an equally controlled and owned joint venture that would focus on software, electronic control units (ECUs) and related network architecture design and development, according to Rivian's website. Volkswagen plans to utilize Rivian's zonal ECU architecture and software stack beginning in the second half of the decade, it said.
While the biggest of the block trades posted in the first half of the day was bearish, most are bullish, data compiled by moomoo showed.
Despite the surge in the stock price, Rivian still saw a net outflow of $45.5 million as of 12:02 a.m. Wednesday. Ten of the 15 technical indicators, including the relative strength index (RSI) are flashing early warning signals that the stock could be overbought, and the trend could turn bearish.
Share your thoughts on Rivian below.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics 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 read Characteristics 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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brave NyanCat_5398 : Corrupted Market!
74304370 : so is it a short call, obligation to sell, or buy option right to buy. confusing...
lightfoot : u still need charging stations. why would you want one. the US has 8.
Paul bin Anthony : I am sorry this true