Lucid Options Traders Expect More Upside After News Of Strategic Partnership With Aston Martin

Lucid Group, Inc. LCID shares settled higher on Monday after the company announced a technology partnership with Aston Martin.

On CNBC’s "Options Action,"  Mike Khouw of Optimize Advisors said Lucid was one of the busiest single stocks and traded more than 3x its average daily call volume on Monday.

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There were buyers of 48,177 of the June 30 weekly 6-calls at an average price of 25 cents per contract, Khouw mentioned.

Traders expect Lucid shares to rally further by the end of the week.

Lucid entered into a definitive agreement to establish a strategic partnership with Aston Martin to integrate and supply electric vehicle powertrain and battery systems. The contracts with Aston Martin are worth more than $450 million. The agreement still needs to be approved by Aston Martin's shareholders and applicable regulatory bodies.

Price Action: Lucid Group shares rose 1.5% to close at $5.55 on Monday and added 4% in Tuesday's premarket trading session.

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