EV Market Buzz: Insider Trading and Short Squeeze Signals
Rivian Automotive has made significant gains in pre-market trading, soaring nearly 50%, which has captured the attention of the electric vehicle investor community.
However, concerns about insider trading have emerged around RIVN stock. A trader recently purchased $14 and $13 call options expiring on June 28.
With Rivian’s current pre-market price at $16.95, if the upward trend continues, the trader stands to profit substantially from their initial $16,000 investment, potentially earning millions.
Meanwhile, the surge in RIVN stock has resulted in substantial losses for short sellers, who faced liquidations due to the stock’s sharp rise.
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The high short interest of 18.85% and average coverage of 4.48 days indicate a possible short squeeze scenario, which could drive RIVN’s price even higher.
In contrast to the recent decline, with RIVN losing 43% of its value since the beginning of 2024, insider selling has been limited.
Only seven sales totaling 128,945 RIVN shares, valued at just over $1 million, occurred in the past six months. As the EV maker’s stock regains momentum, any new insider activity could signal a potential turning point in its price trajectory.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
