Lordstown Motors Stock Stays Afloat After Foxconn Deal

Options volume is already at 8.4 times the typical daily amount

Deputy Editor
May 12, 2022 at 1:34 PM
facebook X logo linkedin

Options traders are blasting red-hot Lordstown Motors Corp (NASDAQ:RIDE) today, after news that the electric vehicle (EV) company is selling its Ohio facility to Foxconn, a Taiwan-based electronics company. Lordstown Motors has been struggling with supply chain issues and material costs, and leading up to it, the general consensus was that the company's short-term survival hinged upon this deal. 

Still deep in penny stock territory, today's blast higher has RIDE rebounding from yesterday's record low of $1.50. Up 52.6% to trade at $2.30 at last check, the stock remains down roughly 68% year-over-year. It's also worth noting that this volatility has stock landing on the Short Sale Restricted (SSR) list. 

RIDE May12

Options volume is running at 8.4 times the usual daily volume already. So far, 38,000 calls and 24,000 puts have been exchanged. The weekly 5/13 2.50- and 2-strike calls are the most popular, with new positions opening at both. 

Analysts are wholeheartedly bearish, leaving plenty of room for upgrades, with two of the four in coverage carrying a lukewarm "hold," and two a "sell" or worse. Meanwhile, short interest represents a hefty 23.2% of the stock's available float, or over five days' worth of pent-up buying power. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI