NEW YORK: Investors are piling into bullish options bets on the shares of Rivian Automotive, with some market participants saying the buying has helped the electric vehicle maker's stock notch a record nine-day winning streak.
Much of the options trading has consisted of investors buying"super short-dated calls," said Daniel Kirsch, head of options at Piper Sandler, adding that the options activity had helped drive Rivian's shares higher. Such a phenomenon - sometimes called a gamma squeeze - occurs when market makers who sold the call options hedge their risk by buying the underlying stock, helping push the share price higher as a result. The phenomenon has occurred with shares of various companies popular with options buyers over the last few years, from AMC to Tesla.