Rivian Automotive Rally May Be Far From Over, Here's What Options Traders Are Expecting

Rivian Automotive Inc RIVN canceled the production of what would have been its cheapest electric trucks and SUVs last week.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Rivian Automotive was one of the top 25 busiest single stock options on Tuesday. There were twice as many calls than puts, he added.

Check out other stocks making moves in the premarket.

There were buyers of 33,000 of the September 9 weekly 35-calls at an average price of 48 cents per contract, Khouw mentioned. Traders expect shares of Rivian Automotive to rise by at least 7% by Friday, he added.

RIVN Price Action: Shares of Rivian Automotive gained 3.59% to settle at $33.22 on Tuesday.

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Photo: Courtesy of rivian.com