Spark Global Limited reports：
Inspired by Tesla Inc. Traders piled into options trades on electric car makers, spurred by sharp swings in the share prices of companies such as Rivian Automotive and Lucid Group.
On Wednesday, Tesla, Lucid and Rivian accounted for three of the six most actively traded options companies, competing with Apple Inc. Stand shoulder to shoulder with companies like Advanced Micro Devices
Options trading surged after the companies’ shares rose sharply. Rivian, whose shares are up about 80% since its INITIAL public offering last week, has just started selling cars and reports few revenues; Lucid is up 20% this week. Gores Guggenheim, the blank cheque company that is in the process of striking a listing deal with Polestar, the Swedish electric car maker, is up 17 per cent this week.
Tesla shares rose on Wednesday, while some other electric car makers fell.
“That’s the story of the week,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab. “They do seem to be in a meme-stock frenzy.”
Lucid, Rivian and Gores Guggenheim were among the 20 most actively traded companies in the options market this week, according to Trade Alert.
A surge in stock options trading can exacerbate volatility in the underlying stocks. But Mr. Frederick said it was unclear how the measures would affect electric-car makers’ stock prices.
Option sentiment among electric car makers tilted toward bearish and defensive bets on Wednesday, according to Trade Alert.
Among the company’s most actively traded contracts, Lucid will prevent the company’s shares from falling below $50 on Friday.
A put option provides the right to sell a stock at a fixed price in the future and is usually used to protect against a fall in the share price.
Rivian shares fell 17.0% to $142.7 on Wednesday, with Rivian puts at $150, $140 and $130 also trading strongly.
Reprint indicated source：Spark Global Limited information