Lordstown Motors Stock Revved Up on Shareholder News

RIDE is brushing off wider-than-expected third-quarter losses per share

Deputy Editor
Nov 8, 2022 at 10:30 AM
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Lordstown Motors Corp (NASDAQ:RIDE) is up 21.6% to trade at $2.24 at last check, after news that Foxconn is set to invest $170 million in the electric vehicle (EV) startup, making it the largest shareholder. The news has RIDE brushing off the company's lackluster third-quarter report, with wider-than-expected losses of 71 cents per share alongside revenue in line with estimates. 

Today's pop has Lordstown Motors stock looking to close above its 200-day moving average for the first time since March of 2021 -- when the stock was trading above the $18 level. Year-to-date, the equity is down roughly 37%. 

Calls have been much more popular than usual in the options pits, per RIDE's 50-day call/put volume ratio of 9.43 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than all other readings from the past year. 

Options traders are keeping with the optimistic sentiment today, as overall options volume runs at 27 times the intraday average. So far, 15,000 calls and 1,945 puts have crossed the tape. The weekly 11/11 2-strike call is seeing the most activity, with new positions being bought to open there. 

It's also worth noting that short interest represents 24.1% of the stock's available float. It would take over nine days to buy back these bearish bets, at RIDE's average pace of trading. 

 

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