Q2 STOCKS TO BUY

Lucid Stock Pulls Back Amid Buyout Rumors

Call traders are continuing to target the stock

Deputy Editor
Jan 30, 2023 at 10:38 AM
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Lucid Group Inc (NASDAQ:LCID) stock is pulling back from its premarket gains, down 5.8% to trade at $12.12 at last glance. The electric vehicle (EV) name has been in the spotlight amid rumors that Saudi Arabia's public investment fund (PIF) wanted to buy out the company, and the shares jumped 43% on Friday.

Options traders are chiming in at four times the intraday average, with 93,000 calls and 37,000 puts exchanged so far. The weekly 2/3 13- and 12.50-strike calls are the most active by far, with new positions being sold to open at the latter. 

This is keeping with the bullish options sentiment of late, as LCID's 50-day call/put volume ratio of 1.97 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all but 1% of readings from the past year.

It's also worth noting that short interest represents 10.2% of the stock's available float. It would take six days to buy back these bearish bets, at LCID's average pace of trading. 

 
 

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