Electric Vehicle Stock Falls After Major Stock Offering

Options volume is today running at four times the intraday average

Deputy Editor
Jun 1, 2023 at 10:54 AM
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Electric vehicle (EV) concern Lucid Group Inc (NASDAQ:LCID) is having a tough day, after the company announced a $3 billion stock offering. Saudi Arabia's Public Investment Fund (PIF), which already owns more than 60% of the company, has agreed to buy nearly two-thirds of the offering for $6.80 per share -- a 12% discount to last session's close. 

At last glance, LCID was down 15.1% at $6.59. Before today's gap lower, the stock was seeing pressure at the $8 level, as well as its 120-day moving average. Year-to-date, the equity is currently down 3.4%. 

Unsurprisingly, options traders are getting in on the action, with options volume running at four times the amount typically seen at this point. So far, 40,000 calls and 48,000 puts have crossed the tape. The January 2025 10-strike put is the most active, followed by the weekly 6/2 6.50-strike put, with new positions being bought to open at both. 

It's also worth noting that short interest represents 8.9% of the stock's available float. It would take over nine days for shorts to cover their bets, at LCID's average pace of trading. 

 

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