RIDE Trade on Mar 18, 2021 15:38 from Marius: Tradervue User Stock Trades.

10 year treasury yield bid up to 1.76 overnight after the FOMC meeting and press conference. It erased all the buying from the day before. Global market sell-off in play as energy was selling off as well. Moving into quadruple witching Friday and closing out Q1 option contracts.

Fundamental Analysis

RIDE is listed as company that manufactures EV's. The EV sector has been under selling pressure as of recent with the profit taking and rotation trade out of growth areas. There were also some companies that used the EV sector hype to try to capitalize and grow which some appear to the market as fraudulent.

Hindenburg Research released a short report last Friday which entailed that the company misled investors. The company is also now under investigation with the SEC. Analysts from different tiers have recently downgraded ratings also after earnings. They had a quarterly net loss of 0.23. It is a company that had just started so earnings aren't expected but with all the recent strong selling, short report, and SEC involvement, it does not appear to resemble a value buy even at current price levels.

Quantitative Analysis

Intraday Fundamentals

RVOL 2.49
AVOL 10.58M
ATR 2.11
Short Float 8.68%
Shs Float 99.48M
Inst Own 24.50%
Market Cap 2.57B

Options Statistics + Tape Reading

SI 1.701
IV 159.75%
IVP 87%
P/C 0.84
VWAP 13.552

Noting call side write activity on the BID at 0-20 delta. Heavy call writing in the AM and PM session possibly implying more momentum to the downside.

Options data stats/notes day prior to catalyst (n/a)

Options Positioning

OI 4075
VOL 938
Delta .03
Theta -.02
Vega .00
Gamma .02
Prob T 3.25%
Prob ITM 1.56%
MMM +/- 1.268
IV Series 175.72%

Positioned within risk parameters. Keeping in mind the lower priced stock which bumps up my lot sizing when positioning.

Options data stats/notes day prior to catalyst (n/a)

Technical Analysis

Elevated IV overall but lower from the peak of when the short report was released. Notable that price is below that trading day implying all buying turned into supply and seller taking over. Almost all volume done on BID today that is also elevated and after earnings. Closed strongly at LOD which is also at 13 long support level.

Longterm 13 S being tested but it was breached day 1. Prior bid day was sold with gap down. Strong momentum to the downside. Noting highest down day volume + day volume on BID.

Trade/Risk Management & Review

This trade was triggered initially as an earnings catalysts. More details were reviewed after hours and put the TA in context with the fundamentals that have been in recent play.

Trade executed as planned however need to keep in mind and be aware of the big picture of the company. More research should have been done before placing the trade. It resulted in favorable outcomes due to the quantitative + technical data but the fundamentals and sentiment could have produced alternative higher risk results. Grading as an overall B-. Interesting to be on the right side on a trade where there are more factors underneath the surface of the scenario. I think risk was notably elevated here and needs to be double checked for anything of resemblance in the future.