Unusual Options talks?(7.7) Rivian takes over Tesla?
July 6 and July7 saw divergent market trends, with fluctuations in major technology companies, creating a phase of speculative trading.
One significant development is the weakening momentum of $Tesla Motors(TSLA)$ . Since returning from the National Day holiday, whether it continues to rise or experiences a pullback, the volatility is not as significant as before. This situation has created more opportunities for other companies.
Looking at the abnormal options trading on July 7, it is evident that $Rivian Automotive, Inc.(RIVN)$ is reaping the benefits. RIVN's continuous surge has also led to increased activity in options trading. With its implied volatility generally above 110%, the higher volatility has attracted more investors to trade near-term options, including expiration options.
In terms of news, since surpassing delivery expectations, RIVN has experienced a wave of upward pressure. After all, the company's market debut has generated significant hype, with a peak decline of over 90%. Previously, it had been criticized for lacking performance support, unlike Tesla, which has seen improved margins.
Rivian reported second-quarter deliveries of 12,640 vehicles, exceeding the expected 11,000, with a production volume of 13,992 vehicles compared to the expected 12,562, and confirmed its annual production target for 2023 of 50,000 vehicles. Rivian also delivered its first batch of 300 electric vans to Amazon in Germany. Amazon has already deployed over 3,000 Rivian electric vans in the United States and plans to deploy 100,000 by the end of 2030.
Looking at the abnormal options trading, on 7.7 it even surged to the top of the overall popular trading list, second only to popular tech companies like $Apple(AAPL)$ and $Amazon.com(AMZN)$ . The significant trading and closing volume on that day can also be seen as a signal of speculative sentiment.
As it is currently unclear whether more institutional investors will join, the company's valuation is at a historical low. However, everything still needs to be balanced after weighing the pros and cons before making a proper assessment. For institutional investors who wish to establish positions in such companies, balancing the positions within the entire new energy sector may involve balancing positions with Tesla (TSLA).
In recent days, speculative interest has shifted from Tesla to RIVN and other second-tier electric vehicle companies like $Lucid Group Inc(LCID)$ This shift also represents investors' cautious stance on the current market conditions of major tech companies.
In addition to Rivian, $Alibaba(BABA)$ was also a major target for active abnormal options trading last Friday. Of course, this was mainly due to the Ant Group's fine, indicating the end of the regulatory review. Additionally, BABA's stock price found support at a certain stage, leading to strong upward momentum and a significant single-day increase. Investors who failed to catch up may choose to sell some end-of-term put options to supplement their positions.
Furthermore, it is worth noting the digital currency companies $Riot Blockchain, Inc.(RIOT)$ & $Marathon Digital Holdings Inc(MARA)$ However, it is also essential to monitor how long this wave of growth in cryptocurrencies led by Bitcoin will last.
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Tesla is not only a car company . It has EV charging network ( largest of all ) . It’s perfectly bullish n it should make that run further ahead ( both short n long term! ) .
Q2 earning are going to be reported soon. Tesla sold a lot of cars in China so I'm thinking the profits are going to be good this quarter (even with the price cuts). If Q2 is good and future guidance is also good (and I think it will be with cybertruck), then share price going to go up.
Go ahead and compare. For where Rivian is in its lifecycle, it is doing better than Tesla did by far. Fantastic execution in progress.
Alibaba is moving up nicely.... slowly but steadily.... leaving no gaps open... long and strong BABA!
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