Rivian Stock Tanks on Share Offering but One Trader Holds Firm
Rivian shares tumbled after a share offering, yet options trader Mike Khouw isn't flinching on his position.
Rivian just got hit hard. The EV maker's stock went into a tailspin after the company announced a share offering — a classic dilution gut-punch that spooked the market and sent retail investors scrambling for the exits.
But Mike Khouw isn't one of those people. The veteran options trader revisited his Rivian trade publicly after the selloff, signaling he's not abandoning ship. That kind of conviction after a price drop either looks genius in six months or becomes a cautionary tale — there's rarely a middle ground with high-beta EV names.
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Share offerings are brutal for momentum stocks. When a company sells new shares, existing shareholders get diluted, and the market reads it as a sign management thinks the stock is fairly valued — or worse, needs cash badly. For Rivian, which is still burning through capital as it scales production, that narrative stings extra.
The tradeable angle here is simple: do you trust the dip or respect the dilution? Khouw's resolve suggests he sees the selloff as an overreaction. But if you're sizing into Rivian right now, know what you own — a capital-hungry EV startup in a brutal rate environment where patience gets tested hard and often.
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