Speaker avoids long-term plays on RIVN due to lack of profitability and poor valuation, but executes a short-side options trade expecting the price to drop.

James says, "Thanks for reviewing the AAL trade. I like to look at SoFi, Rivian, and F for similar type positions." And of course, MEA. Absolutely. Well, we have the Mera trade on. So, let's look at some new ones.

I have do not play Rivian ever. And I know there's lots of premium in it.

So, Rivian, uh, looking at this, we see there's some red here. Profitability is an F. So, I don't like to do long-term plays on stocks that have a that aren't profitable. And the valuation is a D+, which means there could be some downside.

Of course, it's a tiny little stock, which is nice. And the on the year, we can see that it's only moved 15%.

So, let's look at the exact same setup on Rivian and we'll we'll do a quick analysis on on that. So, Rivian's at 15 bucks. Maybe we're buying it at 10, right? Limits our downside.

So, what this does is it creates a position that has a max loss of $356 to the downside. We have a net debit of only $6. So, there's very very little upside risk because if the if this was to go to expiration and both of them expired worthless, lost six bucks.

And we're going to just pull up Rivian and look at that chart. We can look uh at the levels and say, you know, where's this 1350?

Now the idea is that hopefully Rivian actually jobs down. It actually drops down into this profit zone because the max profit on this is actually $24. It's not uh $17. It's it's $7 more than that.

So for example, Rivian would be around the 11 put. So fire around the 12 put. Yeah. Okay. That's nice. That's a nice little uh reference to to take a look at those.

I'm actually surprised. I want to look at Ford. Um because I understand like SoFi, I totally understand Rivian because there's a there's an implied volatility that happens just because of the nature of the business, but Ford is a is not not one that I would expect to have quite so much in there.

Is that right to do on Ford? Probably probably not, you know, but maybe on like SoFi, maybe on Rivian. but maybe on like SoFi, maybe on Rivian.