Traders turn $100k into $2 million on Rivian $RIVN contracts opened BEFORE news with Volkswagen — Transcript

Full transcript

1. 0:04hey everyone in this flow review we are
2. 0:06going to cover unusual options activity
3. 0:09on numerous strikes that hit the tape
4. 0:11prior to a significant news release
5. 0:13announcing a joint venture between
6. 0:16Volkswagen and rivan
7. 0:19Automotive before we get started unusual
8. 0:22Wales is having a summer sale until July
9. 0:2528th get 15% off or 20% when you up
10. 0:29upgrade your current subscription to a
11. 0:31higher
12. 0:33tier after the market closed on June
13. 0:3525th the world's second largest car
14. 0:38maker Volkswagen announced a joint
15. 0:40venture with electric vehicle company
16. 0:43rivan as part of this agreement
17. 0:45Volkswagen is to invest $5 billion in
18. 0:48rivan and the two companies will
19. 0:50collaborate on software for electric
20. 0:53vehicles prior to the news the options
21. 0:55Market seemed to insinuate that maybe
22. 0:58someone knew this news was coming
23. 1:01notable flow on rivan was spotted on the
24. 1:03morning of June
25. 1:0525th when
26. 1:075,010 contracts of the rivan $14 call
27. 1:11for June 27th hit the tape at a price of
28. 1:145 cents per contract this was unusual as
29. 1:17rivan was trading at just
30. 1:20$11.70 per share when these orders came
31. 1:23in placing this contract 19% out of the
32. 1:26money what made this more unusual was
33. 1:29the fact that that at the time of the
34. 1:30orders the contract had just 3 days
35. 1:33until expiration just minutes later
36. 1:36another contract saw similar treatment
37. 1:38the $13 call also for 628 expiration
38. 1:434,051 contracts of the $13 call hit the
39. 1:47tape at the ask of 12 cents per contract
40. 1:50while rivan traded at $199 per share
41. 1:53this contract was 9% out of the money at
42. 1:56the time of filling again with just 3
43. 1:59days until
44. 2:00expiration users in the extended unusual
45. 2:03whales Discord Community notied these
46. 2:04trades with one user noting them as
47. 2:06unusual and commenting on the initial
48. 2:09losses experienced by the contract
49. 2:11shortly after the fills hit the tape as
50. 2:13rivian pulled back slightly Inay now
51. 2:16although those June 25th orders were
52. 2:18extremely unusual we actually noticed
53. 2:20something different we can head over to
54. 2:22the overview page and note on the 14-day
55. 2:26net premium chart we can see that every
56. 2:28single day dating back to June 6th save
57. 2:32for the 11th rivan didn't experience a
58. 2:35single day with negative net call
59. 2:38premiums and in fact since the 14th they
60. 2:41didn't have a single day of net put
61. 2:43premiums either this red line This net
62. 2:46premium chart shows us very clearly that
63. 2:48for at a minimum the last 14 days until
64. 2:51the news dropped rivan didn't experience
65. 2:54any net bearish options activity every
66. 2:57single day was showing bullish sentiment
67. 3:00in the options premiums now once that
68. 3:02news dropped the reaction from investors
69. 3:04in after hours was fairly instantaneous
70. 3:07we'll head over to the Chart
71. 3:09next and I'll flip this to a little bit
72. 3:12of a higher time frame to clear up some
73. 3:14space here but we can see that after the
74. 3:17news dropped rivan ripped in after hours
75. 3:21trading from around
76. 3:23$11.9 per share all the way up to a high
77. 3:27of $118.90
78. 3:30per share a nearly 59% move in the stock
79. 3:34price on the morning of June 26 the
80. 3:37traders who innocently and luckily I'm
81. 3:39sure saw a massive gain on their
82. 3:43contracts both the $13 call and the $14
83. 3:47call expiring on June 28th 2024 were
84. 3:50nearly 10% and 20% out of the money
85. 3:53respectively just the day prior now
86. 3:56found themselves deep in the money by
87. 3:58market open the 13 $ call which was
88. 4:00opened at 12 cents per contract reached
89. 4:03a high on the contract of
90. 4:06$3.85 a
91. 4:083,18 per gain the $14 call for 628 2024
92. 4:14opened for 5 cents per contract and hit
93. 4:17a maximum high on June 26th of
94. 4:20$256 per contract of 5,000 and 20% gain
95. 4:26now the nature of this flow just one day
96. 4:28before news and all of that bullish
97. 4:30activity that predated the announcement
98. 4:32by weeks is certainly eyebrow raising
99. 4:35what do you think were these Traders
100. 4:37just lucky or did they have some
101. 4:40knowledge either way it's
102. 4:44unusual and remember don't miss out on
103. 4:47the opportunity to get unusual whales at
104. 4:49a discount you'll get 15% off and 20%
105. 4:54off when upgrading to a higher
106. 4:56subscription tier