As some of you may have heard , Rivian and VW will be doing a joint venture where they both will benefit from this(hopefully).
VW will receive Rivian’s software development and in return Rivian will receive access to VW’s supply chain which should allow them to produce more vehicles.
With that said, do you believe now is a good time to do a call option on Rivian, if so, should it be a long call or short call? I’m thinking a long call.
Rivian has a market cap of $13.17 billion and is currently trading at $13.23 per share.
https://www.ft.com/content/b861e949-76a2-4782-9c74-947dfb56b41a
Posted by GOOD_Minus_An_O
4 Comments
You seem to want to do something but I’m not hearing a clear thesis. The news was announced [in late June](https://rivian.com/newsroom/article/rivian-and-volkswagen-group-announce-plans-for-joint-venture) and already impacted the share price, why would you be just now trying to speculate on it? Were you aware this is >2-month old news or did you just come across it? And why are calls the preferred instrument? Saying “I’m doing calls, should I sell them (CCs? Do you own shares?) or buy them seems very arbitrary. Why not just buy shares if you think it will rise?
My thoughts on Rivian is the same as when it SPACed, not a good investment until they are in sight of positive earnings and they are not yet even gross profitable.
The only reason I can see to buy calls is Fed lowers rates (this increases demand) and no recession. I assume production been falling for 2 quarters because there is lack of demand as deliveries been flat for 3 quarters.
Rivian can make big moves up, but I think it is to risky. I just don’t like unprofitable companies anymore.
Yeah it rallied 30% off that news already bud.
I don’t think you understand options well enough to be trading them… I suggest just buying shares if you think the price will rise due to this venture but as others have mentioned this news is old enough to be priced in and the money being injected won’t have a direct effect on the share price so I wouldn’t use that as your reason to buy