On Wednesday, sentiment in options for electric-automakers leaned towards bearish and defensive bets, according to data from Trade Alert.
see photosTesla, Lucid and Rivian made up three of the six most actively traded option names
Traders are flocking to options trades on electric-vehicle makers as shares of companies such as Tesla Inc., Rivian Automotive and Lucid Group fluctuate sharply. On Wednesday, Tesla, Lucid and Rivian made three of the six most actively traded option names side by side with the likes of Apple Inc. and Advanced Micro Devices.
The bulk of the amount comes on the heels of big gains for the stocks of many of these companies. Shares of Rivian, which has just started selling vehicles and has little revenue to report, are up nearly 80% since its initial public offering last week; Lucid is up 20% this week. Blanc Czech company Gores Guggenheim, which is making a deal to take Swedish electric-car maker Polestar public, is up 17% for the week.
Tesla shares were up on Wednesday, while some other electric vehicle makers retreated.
“This is the topic of the week,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab. “It looks like they might be mired in a meme-stock type of frenzy.”
Lucid, Rivian and Gores Guggenheim were among the top 20 most actively traded names in the options market this week, according to data from Trade Alert.
Tesla shares were up on Wednesday, while some other electric vehicle makers retreated.
The buoyancy of trading in stock options can increase the volatility in the underlying shares. However, it was not immediately clear how they affected shares of electric vehicle makers, Frederick said.
On Wednesday, sentiment in options for electric-automakers leaned towards bearish and defensive bets, according to data from Trade Alert.
Lucid says that against shares falling below $50 as of Friday were among the company’s most actively traded contracts.
Puts give the right to sell shares at a certain price in the future and are often used to protect against a drop in the share price.
0 notes
Rivian shares declined 17.0% on Wednesday to $142.7, Rivian also traded heavily at $150, $140, $130 levels.
for the latest auto news And ReviewFollow carandbike.com Twitter, Facebook, and subscribe to our youtube Channel.
,