Options Traders, Short Sellers Target Volatile EV Stock

The electric vehicle space is selling off today

Deputy Editor
Jan 18, 2022 at 2:41 PM
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The electric vehicle (EV) space is tumbling lower today, with many major names feeling the heat, including Lucid Group Inc (NASDAQ:LCID), which was last seen down 4% to trade at $40.55. While Lucid stock saw a strong rally into the new year, the surge was cut short last week, just below the $48 level, sending it back below the 60-day moving average -- a trendline LCID has danced around since mid-December -- right out of the gate today. 

lcid jan 18

As a member of the buzzy EV sector, it's no surprise the equity has been subject to some choppy trading, and even less of surprise that options traders ramped up their speculation. In fact, Lucid stock just logged another week on Schaeffer's Senior Quantitative Analyst Rocky White's list of names that have attracted the highest weekly options volume over the last two weeks. According to this list, 3,716,455 calls and 2,335,461 puts were exchanged during this time period, while it looks like the weekly 1/14 45-strike call and the weekly  1/7 40-strike call were the two most popular contracts.

mao  jan 18

Today, however, puts are outnumbering calls, with 130,000 of the former and 92,000 of the latter across the tape so far. The January 40 put contract is seeing the most attention by far, while the 45 call in the same monthly series is trailing behind.

Meanwhile, short sellers are also revving up their bearish bets. Short interest climbed 20% in the last reporting period, and the 90.06 million shares sold short make up 5.7% of  the stock's available float.

 

 




 
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