The mysterious stock trader who managed to turn a five-figure bet in electric vehicle firm Rivian Automotive (RIVN) has seen their gains accelerate, to the point they managed to turn round $25,000 into over $2.5 million in a day.
According to available data, a single trader purchased a large number of $14 and $13 call options for RIVN, expiring on June 28. These options give the holder the right, but not the obligation, to buy Rivian stock at a set price by the expiration date.
The timing of the trade has raised eyebrows, with some questioning whether the buyer possessed material non-public information about the company as the purchase came ahead of a Volkswagen announcement of an investment of up to $5 billion in Rivian, which allowed the trader to turn their $25,000 bet on relatively cheap call options into over $2.5 million.
Rivian saw a pre-market surge shortly after the Volkswagen investment was announced, and despite a small correction is still up around 33% over the last few days over it. The pre-market surge has also intensified pressure on short sellers, who had bet on Rivian’s stock price falling as the company, according to the New York Times, has been losing tens of thousands of dollars on each vehicle sold and some analysts suspect it wouldn’t be able to survive long enough to be profitable without the Volkswagen deal.
Similar trades aren’t uncommon in the cryptocurrency, with CryptoGlobe recently reporting on an unidentified insider trader who managed to turn just $1,200 into nearly $1 million in just three hours trading a newly launched cryptocurrency through four new wallets after acquiring 19% of that cryptocurrency’s total supply.
Featured Image via Pixabay
