It would appear that LUCID GROUP is facing a sell off based on bad new, dilution of shares, lack of consumer demand. However, based on technical, it would appear to be a very aggressive sell-off it was a sell-off. Not beneficial to not allow for market to recover in regards to liquidity. Based on the aggressive downside moves, the probability of a cat bounce appears very high and I am honestly amazed at the open interest on puts that could look to be burnt.
3$ options expiring this week are trading at $.08 a contract at the moment and if there is any level of volatility to the bull side, the out of the money 3$ strike will flip into the money and dominoing into an extreme level of gamma exposure on the short side.
People shorting need to close their position at some point, like also contributing to the large put open interest which could be contracts shorted with shorted equity.
3$ options expiring this week are trading at $.08 a contract at the moment and if there is any level of volatility to the bull side, the out of the money 3$ strike will flip into the money and dominoing into an extreme level of gamma exposure on the short side.
People shorting need to close their position at some point, like also contributing to the large put open interest which could be contracts shorted with shorted equity.