Smart Money Is Betting Big In RIVN Options

Author: Benzinga Insights | March 21, 2024 02:02pm

Investors with a lot of money to spend have taken a bearish stance on Rivian Automotive (NASDAQ:RIVN).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with RIVN, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 14 uncommon options trades for Rivian Automotive.

This isn't normal.

The overall sentiment of these big-money traders is split between 21% bullish and 78%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $152,853, and 10 are calls, for a total amount of $943,941.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $10.0 and $22.5 for Rivian Automotive, spanning the last three months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Rivian Automotive stands at 12904.1, with a total volume reaching 4,953.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Rivian Automotive, situated within the strike price corridor from $10.0 to $22.5, throughout the last 30 days.

Rivian Automotive Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Strike Price	Total Trade Price	Open Interest	Volume
RIVN	CALL	TRADE	BEARISH	01/17/25	$12.50	$390.4K	8.4K	117
RIVN	CALL	TRADE	NEUTRAL	12/19/25	$12.50	$283.2K	1.0K	0
RIVN	PUT	TRADE	NEUTRAL	01/17/25	$12.50	$49.0K	32.8K	274
RIVN	PUT	TRADE	NEUTRAL	01/17/25	$12.50	$42.5K	32.8K	1
RIVN	CALL	SWEEP	BEARISH	04/19/24	$12.50	$40.9K	29.2K	1.9K

About Rivian Automotive

Rivian Automotive Inc designs, develops, and manufactures category-defining electric vehicles and accessories. In the consumer market, the company launched the R1 platform with the first generation of consumer vehicles: the R1T, a two-row, five-passenger pickup truck, and the R1S, a three-row, seven-passenger sport utility vehicle (SUV).

Following our analysis of the options activities associated with Rivian Automotive, we pivot to a closer look at the company's own performance.

Rivian Automotive's Current Market Status

• With a volume of 15,219,227, the price of RIVN is up 0.36% at $11.4.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 47 days.

Professional Analyst Ratings for Rivian Automotive

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $19.0.

• An analyst from Stifel persists with their Buy rating on Rivian Automotive, maintaining a target price of $18.
• An analyst from RBC Capital downgraded its action to Sector Perform with a price target of $15.
• Showing optimism, an analyst from Piper Sandler upgrades its rating to Overweight with a revised price target of $21.
• An analyst from B of A Securities has decided to maintain their Buy rating on Rivian Automotive, which currently sits at a price target of $25.
• An analyst from Jefferies downgraded its action to Buy with a price target of $16.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Rivian Automotive with Benzinga Pro for real-time alerts.

Posted In: RIVN