What AI is Seeing in This Earnings Season
Rivian's latest surge isn’t just random market noise—our AI models tracking options flow, institutional positioning, and momentum indicators suggest a significant shift in sentiment.
- Institutional Accumulation: Recent filings show increased hedge fund interest in RIVN, signaling confidence in its long-term potential.
- Expanding Market Reach: Rivian’s decision to sell delivery vans beyond Amazon has opened new revenue streams, making the stock more attractive.
- Options Activity: The $15 strike calls for March expiration saw a 130% increase in open interest, hinting at bullish positioning.
With Rivian’s next earnings report approaching, traders are anticipating potential guidance updates that could fuel further gains.
The Stocks AI is Flagging for Big Moves
AI-driven earnings models have identified Rivian as a high-volatility play, comparing it to similar EV startups that have experienced large post-earnings swings.
- Price Action Signal: RIVN is breaking above key resistance at $14.00, suggesting bullish momentum.
- Historical Volatility: In its last four earnings reports, Rivian has seen an average post-earnings move of 9.3%.
- Institutional Bets: A spike in bullish call spreads suggests that traders are expecting more upside, possibly targeting the $16-$18 range.
How Traders Can Position for Earnings Moves
With increased volatility expectations, options traders can take advantage of strategic setups:
✅ Bull Call Spread: Buy the $14 Call, Sell the $17 Call (March expiration) to target further upside while limiting risk.
✅ Pre-Earnings Straddle: For those expecting a sharp move in either direction, buying both a $14 Call and $14 Put can capture volatility expansion.
✅ Selling Puts for Premium: Writing cash-secured puts at the $12 strike offers a way to collect income while positioning for a pullback entry.
Post-Earnings AI Strategy: What’s Next?
AI models predict elevated volatility around Rivian’s next earnings report, which could create post-earnings trade setups:
📉 If Rivian rises post-earnings, look for profit-taking near $16.50-$17.00, based on past resistance zones.
📈 If Rivian drops post-earnings, AI suggests support around $12.50-$13.00, where institutions may step in.
🔄 Straddle traders should consider unwinding positions immediately after the earnings move to lock in profits before IV crush.
The Trader’s Take: Noah Patel’s View
“I love when I see options flow lining up with institutional moves—Rivian’s got both. This stock has been beaten down, but now it’s showing signs of life. The smart play here? Take a defined-risk options trade into earnings rather than chasing the stock outright. If you’re feeling aggressive, a pre-earnings straddle could capture a big move. But if you just want exposure with lower risk, a simple bull call spread keeps it clean.”
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