Shares of Rivian Automotive Inc RIVN tumbled almost 21% on Monday in the stock’s worst trading day ever. The stock plummeted after Ford Motor Company F announced plans to sell 8 million of its Rivian Automotive shares as the insider lockup expires on Sunday.
Rivian Automotive reports results on Wednesday and options traders see more pain ahead.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said the stock traded more than six times its average daily put volume. Puts outpaced calls by more than 2.6, implying a move of more than 17% after the company reports results, he added.
There were buyers of 31,000 of the May 13 weekly 24 puts at $2.14 per contract on average, Khouw mentioned. Check out other stocks making big moves in the premarket.
The buyers of these calls are betting that the stock will decline by at least 5% by Friday, he added.
Photo courtesy of Rivian.
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