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Option Witch | Unusual Activity Points to a Bearish Opportunity for Faraday Future

Barchart05-21

While technology players like Nvidia and Super Micro Computer have dominated the market this year, the business week ending May 17 belongs to electric vehicle manufacturer Faraday Future. If you haven...

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Whoopdeedoo
·05-21
Here come the shorties posting information to scare investors and save the money stealing shorties
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If you haven...</p>\n\n<a href=\"https://www.barchart.com/story/news/26324573/unusual-options-activity-points-to-a-bearish-opportunity-for-faraday-future-ffie\">Source Link</a>\n\n</div>\n","source":"barchart_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Unusual Activity Points to a Bearish Opportunity for Faraday Future</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Unusual Activity Points to a Bearish Opportunity for Faraday Future\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-21 11:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/26324573/unusual-options-activity-points-to-a-bearish-opportunity-for-faraday-future-ffie><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>While technology players like Nvidia and Super Micro Computer have dominated the market this year, the business week ending May 17 belongs to electric vehicle manufacturer Faraday Future. If you haven...</p>\n\n<a href=\"https://www.barchart.com/story/news/26324573/unusual-options-activity-points-to-a-bearish-opportunity-for-faraday-future-ffie\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BMPRXR70.SGD","symbol_name":"Neuberger Berman 5G Connectivity A Acc SGD-H","start_time":0,"source_url":"https://www.barchart.com/story/news/26324573/unusual-options-activity-points-to-a-bearish-opportunity-for-faraday-future-ffie","article_id":"2437488979","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2437488979","pubTimestamp":1716261298,"sourceInfo":{"source_id":"barchart_highlight","name":"Barchart"},"weMediaInfo":null,"summary":"While technology players like Nvidia  and Super Micro Computer  have dominated the market this year, the business week ending May 17 belongs to electric vehicle manufacturer Faraday Future . 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If you haven’t heard of the enterprise, you’re not alone. It’s also a sign that if you’re like most investors, you should steer clear of FFIE stock.According to its public profile, Faraday is a “shared intelligent mobility ecosystem company.” In early 2021, the company made its public market debut via a reverse merger with a special purpose acquisition company (SPAC). I can probably just end the discussion right here considering how brilliantly these blank-check firms have performed post business combination.Brilliantly bad, that is, if you didn’t catch the sarcasm.FFIE stock is no exception. Since making its debut, the security has lost 99.96% of equity value, per data from Google Finance. That’s just about as bad as a public company can get without going to zero. And to spare you the time, zero may very well be where this story eventually ends.As a rule of thumb, it’s best to avoid such draconian pronouncements because they can bite back badly. However, with FFIE stock, it’s difficult to characterize the underlying business as anything other than a train wreck. It’s a pre-revenue enterprise with an annual net loss of $552 million. At the moment, it features a market capitalization of less than $44 million, making it a nano-cap trade.Prior to its dramatic performance last week, Barchart’s Technical Opinion indicator rated FFIE stock a 100% Sell. There was every reason to run for the exits, not least of which is Faraday’s failure to file a Form 10Q for the quarter ended March 31, 2024 within the prescribed time period.Yet FFIE stock did pop dramatically for bullish speculators. Moving forward, though, the narrative could shift in favor of the bears.FFIE Stock Lights Up Unusual Options ScreenerLast week, FFIE stock managed to storm to a 2,134% performance. Given such a blistering run, it came as no surprise that Faraday ranked among the top highlights in Barchart’s screener for unusual stock options volume. This data interface helps identify what the smart money may be doing, potentially unearthing compelling opportunities.Following the close of the May 17 session, total volume for FFIE stock options hit nearly 1.47 million contracts against an open interest reading of 489,544 contracts. Notably, the delta between the Friday session volume and the trailing one-month average metric came out to 1,072.47%. Breaking down the details, call volume reached 757,960 contracts versus put volume of 711,070.Interestingly, the options flow screener – which filters exclusively for big block transactions likely made by institutional investors – was abuzz with activity. What was particularly intriguing was that comparing options with bullish and bearish sentiment, the number of transactions with six-digit premiums broke down to six and nine, respectively.In other words, it appears that the big dogs are largely betting against FFIE stock. That makes sense given the poor financial situation. But why did shares rise so dramatically in the first place?The answer to that question is most likely short-squeeze speculation. Barchart notes that Faraday’s short interest stands at 99.96% of its float. That’s an intense magnitude of bearishness that the bulls exploited. Essentially, to cover a short position requires buying to close. By logical deduction, if the bears panic, that creates upward pressure on the target security.At the same time, the short float sits at only 0.6 days to cover. That means based on average trading volume, pessimistic speculators have enough share volume to quickly cover their positions. So, the bullish ride probably won’t last long.Indeed, with Friday’s market loss of almost 38%, the pendulum has probably shifted.Put Options Appear CompellingBecause of the speculative appeal of the short squeeze, it’s always dangerous to bet against the bulls. However, Faraday may be in a desperate situation. Right now, its retained losses are sitting at nearly $3.9 billion in the red. That’s going to take a long time to recover from, especially with no revenue.Plus, with all due respect, management appears to be living in a fantasy world. With the company’s FF 91 commanding a price tag of $309,000, the EV startup is seeking an extremely narrow market. That’s not helpful at all because at that price point, people are looking for exotic hypercars. They’re not looking for funky crossovers that can do zero to 60 miles per hour in 2.27 seconds.Don’t get me wrong, the performance is incredible. But the offering is underwhelming compared to what customers must pay.Given that, the far-expiry 50-cent put options look enticing. For example, the Jan 17 ’25 0.50 Put saw volume of 2,206 contracts on Friday. The Jan 16 ’26 0.50 Put printed volume of 4,290 contracts. With so little going for FFIE stock other than the short squeeze, it may be time to go in the opposite direction.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":308189732352088,"gmtCreate":1716263474216,"gmtModify":1716270349409,"author":{"id":"3573459984771398","authorId":"3573459984771398","name":"Whoopdeedoo","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3573459984771398","authorIdStr":"3573459984771398"},"htmlText":"Here come the shorties posting information to scare investors and save the money stealing shorties","listText":"Here come the shorties posting information to scare investors and save the money stealing shorties","text":"Here come the shorties posting information to scare investors and save the money stealing shorties","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/308189732352088","repostId":2437488979,"repostType":2,"repost":{"id":"2437488979","pubTimestamp":1716261298,"share":"https://ttm.financial/m/news/2437488979?lang=&edition=fundamental","pubTime":"2024-05-21 11:14","market":"us","language":"en","title":"Option Witch | Unusual Activity Points to a Bearish Opportunity for Faraday Future","url":"https://stock-news.laohu8.com/highlight/detail?id=2437488979","media":"Barchart","summary":"While technology players like Nvidia  and Super Micro Computer  have dominated the market this year, the business week ending May 17 belongs to electric vehicle manufacturer Faraday Future . If you haven’t heard of the enterprise, you’re not alone. It’s also a sign that if you’re like most investors, you should steer clear of FFIE stock.According to itspublic profile, Faraday is a “shared intelligent mobility ecosystem company.” In early 2021, the company made its public market debut via areverse merger with a special purpose acquisition company . I can probably just end the discussion right here considering how brilliantly these blank-check firms have performed post business combination.Interestingly, theoptions flow screener – which filters exclusively for big block transactions likely made by institutional investors – was abuzz with activity. What was particularly intriguing was that comparing options with bullish and bearish sentiment, the number of transactions with six-digit prem","content":"<html><head></head><body><p>While technology players like <a href=\"https://laohu8.com/S/NVDA\">Nvidia</a> and <a href=\"https://laohu8.com/S/SMCI\">Super Micro Computer</a> have dominated the market this year, the business week ending May 17 belongs to electric vehicle manufacturer <a href=\"https://laohu8.com/S/FFIE\">Faraday Future</a>. If you haven’t heard of the enterprise, you’re not alone. It’s also a sign that if you’re like most investors, you should steer clear of FFIE stock.</p><p>According to its public profile, Faraday is a “shared intelligent mobility ecosystem company.” In early 2021, the company made its public market debut via a reverse merger with a special purpose acquisition company (SPAC). I can probably just end the discussion right here considering how brilliantly these blank-check firms have performed post business combination.</p><p>Brilliantly bad, that is, if you didn’t catch the sarcasm.</p><p>FFIE stock is no exception. Since making its debut, the security has lost 99.96% of equity value, per data from Google Finance. That’s just about as bad as a public company can get without going to zero. And to spare you the time, zero may very well be where this story eventually ends.</p><p>As a rule of thumb, it’s best to avoid such draconian pronouncements because they can bite back badly. However, with FFIE stock, it’s difficult to characterize the underlying business as anything other than a train wreck. It’s a pre-revenue enterprise with an annual net loss of $552 million. At the moment, it features a market capitalization of less than $44 million, making it a nano-cap trade.</p><p>Prior to its dramatic performance last week, Barchart’s Technical Opinion indicator rated FFIE stock a 100% Sell. There was every reason to run for the exits, not least of which is Faraday’s failure to file a Form 10Q for the quarter ended March 31, 2024 within the prescribed time period.</p><p>Yet FFIE stock did pop dramatically for bullish speculators. Moving forward, though, the narrative could shift in favor of the bears.</p><h2 id=\"id_2242057615\">FFIE Stock Lights Up Unusual Options Screener</h2><p>Last week, FFIE stock managed to storm to a 2,134% performance. Given such a blistering run, it came as no surprise that Faraday ranked among the top highlights in Barchart’s screener for unusual stock options volume. This data interface helps identify what the smart money may be doing, potentially unearthing compelling opportunities.</p><p>Following the close of the May 17 session, total volume for FFIE stock options hit nearly 1.47 million contracts against an open interest reading of 489,544 contracts. Notably, the delta between the Friday session volume and the trailing one-month average metric came out to 1,072.47%. Breaking down the details, call volume reached 757,960 contracts versus put volume of 711,070.</p><p>Interestingly, the options flow screener – which filters exclusively for big block transactions likely made by institutional investors – was abuzz with activity. What was particularly intriguing was that comparing options with bullish and bearish sentiment, the number of transactions with six-digit premiums broke down to six and nine, respectively.</p><p>In other words, it appears that the big dogs are largely betting against FFIE stock. That makes sense given the poor financial situation. But why did shares rise so dramatically in the first place?</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/b9b1cfba4b15a1c6d6c109d9c84bf1e7\" tg-width=\"1157\" tg-height=\"1131\"/></p><p>The answer to that question is most likely short-squeeze speculation. Barchart notes that Faraday’s short interest stands at 99.96% of its float. That’s an intense magnitude of bearishness that the bulls exploited. Essentially, to cover a short position requires <em>buying</em> to close. By logical deduction, if the bears panic, that creates upward pressure on the target security.</p><p>At the same time, the short float sits at only 0.6 days to cover. That means based on average trading volume, pessimistic speculators have enough share volume to quickly cover their positions. So, the bullish ride probably won’t last long.</p><p>Indeed, with Friday’s market loss of almost 38%, the pendulum has probably shifted.</p><h2 id=\"id_1896391985\">Put Options Appear Compelling</h2><p>Because of the speculative appeal of the short squeeze, it’s always dangerous to bet against the bulls. However, Faraday may be in a desperate situation. Right now, its retained losses are sitting at nearly $3.9 billion in the red. That’s going to take a long time to recover from, especially with no revenue.</p><p>Plus, with all due respect, management appears to be living in a fantasy world. With the company’s FF 91 commanding a price tag of $309,000, the EV startup is seeking an extremely narrow market. That’s not helpful at all because at that price point, people are looking for exotic hypercars. They’re not looking for funky crossovers that can do zero to 60 miles per hour in 2.27 seconds.</p><p>Don’t get me wrong, the performance is incredible. But the offering is underwhelming compared to what customers must pay.</p><p>Given that, the far-expiry 50-cent put options look enticing. For example, the Jan 17 ’25 0.50 Put saw volume of 2,206 contracts on Friday. The Jan 16 ’26 0.50 Put printed volume of 4,290 contracts. With so little going for FFIE stock other than the short squeeze, it may be time to go in the opposite direction.</p></body></html>","source":"barchart_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Option Witch | Unusual Activity Points to a Bearish Opportunity for Faraday Future</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOption Witch | Unusual Activity Points to a Bearish Opportunity for Faraday Future\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-21 11:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.barchart.com/story/news/26324573/unusual-options-activity-points-to-a-bearish-opportunity-for-faraday-future-ffie><strong>Barchart</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>While technology players like Nvidia and Super Micro Computer have dominated the market this year, the business week ending May 17 belongs to electric vehicle manufacturer Faraday Future. If you haven...</p>\n\n<a href=\"https://www.barchart.com/story/news/26324573/unusual-options-activity-points-to-a-bearish-opportunity-for-faraday-future-ffie\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","BK4503":"景林资产持仓","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0109392836.USD":"富兰克林科技股A","LU0053671581.USD":"摩根大通美国小盘成长股 A(dist)","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4581":"高盛持仓","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4549":"软银资本持仓","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","BK4170":"电脑硬件、储存设备及电脑周边","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU0444971666.USD":"天利全球科技基金","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4532":"文艺复兴科技持仓","BK4554":"元宇宙及AR概念","BK4592":"伊斯兰概念","BK4534":"瑞士信贷持仓","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0238689110.USD":"贝莱德环球动力股票基金","BK4587":"ChatGPT概念","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0072462426.USD":"贝莱德全球配置 A2","FFIE":"Faraday Future","BK4543":"AI","LU0080751232.USD":"富达环球多元动力基金A","BK4527":"明星科技股","LU0056508442.USD":"贝莱德世界科技基金A2","BK4579":"人工智能","BK4588":"碎股"},"source_url":"https://www.barchart.com/story/news/26324573/unusual-options-activity-points-to-a-bearish-opportunity-for-faraday-future-ffie","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2437488979","content_text":"While technology players like Nvidia and Super Micro Computer have dominated the market this year, the business week ending May 17 belongs to electric vehicle manufacturer Faraday Future. If you haven’t heard of the enterprise, you’re not alone. It’s also a sign that if you’re like most investors, you should steer clear of FFIE stock.According to its public profile, Faraday is a “shared intelligent mobility ecosystem company.” In early 2021, the company made its public market debut via a reverse merger with a special purpose acquisition company (SPAC). I can probably just end the discussion right here considering how brilliantly these blank-check firms have performed post business combination.Brilliantly bad, that is, if you didn’t catch the sarcasm.FFIE stock is no exception. Since making its debut, the security has lost 99.96% of equity value, per data from Google Finance. That’s just about as bad as a public company can get without going to zero. And to spare you the time, zero may very well be where this story eventually ends.As a rule of thumb, it’s best to avoid such draconian pronouncements because they can bite back badly. However, with FFIE stock, it’s difficult to characterize the underlying business as anything other than a train wreck. It’s a pre-revenue enterprise with an annual net loss of $552 million. At the moment, it features a market capitalization of less than $44 million, making it a nano-cap trade.Prior to its dramatic performance last week, Barchart’s Technical Opinion indicator rated FFIE stock a 100% Sell. There was every reason to run for the exits, not least of which is Faraday’s failure to file a Form 10Q for the quarter ended March 31, 2024 within the prescribed time period.Yet FFIE stock did pop dramatically for bullish speculators. Moving forward, though, the narrative could shift in favor of the bears.FFIE Stock Lights Up Unusual Options ScreenerLast week, FFIE stock managed to storm to a 2,134% performance. Given such a blistering run, it came as no surprise that Faraday ranked among the top highlights in Barchart’s screener for unusual stock options volume. This data interface helps identify what the smart money may be doing, potentially unearthing compelling opportunities.Following the close of the May 17 session, total volume for FFIE stock options hit nearly 1.47 million contracts against an open interest reading of 489,544 contracts. Notably, the delta between the Friday session volume and the trailing one-month average metric came out to 1,072.47%. Breaking down the details, call volume reached 757,960 contracts versus put volume of 711,070.Interestingly, the options flow screener – which filters exclusively for big block transactions likely made by institutional investors – was abuzz with activity. What was particularly intriguing was that comparing options with bullish and bearish sentiment, the number of transactions with six-digit premiums broke down to six and nine, respectively.In other words, it appears that the big dogs are largely betting against FFIE stock. That makes sense given the poor financial situation. But why did shares rise so dramatically in the first place?The answer to that question is most likely short-squeeze speculation. Barchart notes that Faraday’s short interest stands at 99.96% of its float. That’s an intense magnitude of bearishness that the bulls exploited. Essentially, to cover a short position requires buying to close. By logical deduction, if the bears panic, that creates upward pressure on the target security.At the same time, the short float sits at only 0.6 days to cover. That means based on average trading volume, pessimistic speculators have enough share volume to quickly cover their positions. So, the bullish ride probably won’t last long.Indeed, with Friday’s market loss of almost 38%, the pendulum has probably shifted.Put Options Appear CompellingBecause of the speculative appeal of the short squeeze, it’s always dangerous to bet against the bulls. However, Faraday may be in a desperate situation. Right now, its retained losses are sitting at nearly $3.9 billion in the red. That’s going to take a long time to recover from, especially with no revenue.Plus, with all due respect, management appears to be living in a fantasy world. With the company’s FF 91 commanding a price tag of $309,000, the EV startup is seeking an extremely narrow market. That’s not helpful at all because at that price point, people are looking for exotic hypercars. They’re not looking for funky crossovers that can do zero to 60 miles per hour in 2.27 seconds.Don’t get me wrong, the performance is incredible. But the offering is underwhelming compared to what customers must pay.Given that, the far-expiry 50-cent put options look enticing. For example, the Jan 17 ’25 0.50 Put saw volume of 2,206 contracts on Friday. The Jan 16 ’26 0.50 Put printed volume of 4,290 contracts. With so little going for FFIE stock other than the short squeeze, it may be time to go in the opposite direction.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":6,"commentSize":1,"repostSize":1,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}