Let's talk Rivian Stock.
As a trader, you need to be able to understand when a stock is actually worth investing in or just trending.
Some stocks seem to blow up over night.
But as a trader you have to ask the question why?
I'm going to teach you how to spot the stocks spikes, like Rivian, that you should (or shouldn't) start trading and how to make money when we see these spikes in trading volume.
It's the perfect opportunity to have big returns in a short amount of time.
Even though you can't make a Rivian stock price prediction. You can understand the trend of how the stock will probably trend based on how the trading herd reacts.
So let's talk about whether or not you should be trading Rivian stock!
Shortly after Labor Day, we saw some extraordinarily high volume on Rivian and the stock price just took off like a rocket. In today's video, I'll show you how to spot the high volume surges and how I trade and take advantage of them.
This is the kind of trading tips I share every week in my webinars. And with my one on one mentoring clients, I want you to be a thinking trader, and able to spot good setups on your own, not just copy what I do.
If you liked these short videos and don't want to miss one, be sure to sign up for my Winning At Options weekly newsletter below.
Those of you who know me know that I like to give everything a special name. My special name for this search is"TreasureHunt". That's because that's what I'm doing. I'm searching for hidden treasures out there.
Over the years, I've learned that trading volume moves prices up and down. So my first step on the treasure hunt is to identify unusual volume spikes, I do this daily, about an hour to an hour and a half after the market is opened.
There are a lot of search engines out there that you can use, I use a free one called finviz, that's Here is how you use it.
1) Open a screener.
2)Hit the All button on step two
3) Add in search criteria
When I go treasure hunting, I want
-The price to be over $15.
-The average volume to be at least a million shares traded each day
-To make sure I'm only looking at stocks
-To show only US stocks (I quit trading Chinese stocks altogether)
- To make sure they're optional (able to be used for options trading
4)Head over to the far right column and sort by volume, high to low.
What I'm looking for are stocks that are not usually on the list that have huge volume for that time a day.
When I spot a stock with unusual volume spikes. The next step is to determine why that spike occurred.
It's usually good news of some sort. Sometimes it's bad news.
An example is an earnings announcement. There's usually a high volume there as people are reacting to the earnings announcement. But it's not my favorite news to trade this trade on.
I much prefer announcements or news that has a short term effect.
Rivian is an example of that.
On September 8, there was a huge volume spike. There you can see it normally, next is the earnings announcement right there. But then just a little while later, what 20-30 days later - unexpected high volume.
I found a news announcement out there and it said thatRivian It's signed with Mercedes Benz as a joint venture. Bingo!
My next question is how can I benefit from that news? Well, inRivian's case, the news was a surprise. And the reactionhad traders buying the stock up.
So what did I do?
I bought a call option 20 days in the future right at the money that was on a Thursday.
I bought it on Thursday, and I sold it off on Friday.
And the reason I did that is I just didn't want to go through the weekend because I had already made us what was it 78% profit in just two days.
What am I doing now?
Well, I've noticed when stocks shoot up like a rocket at some point, there is a sell off as traders are grabbing their profits.
It hasn't happened yet for Rivian.
I do see an old resistance out there that could trigger the sell off.
And when I see that sell off start, my intention is to buy a put position maybe 20 to 30 days in the future and take advantage as the prices go down as traders are taking their profits.
I share this kind of thinking every week on my webinars and in theDATA classes. I hope you decide to join investing buddies and go on this amazing journey with us. The link to sign up is below to make your decision a no brainer. We give you two weeks free just to try us out. See you next week!
