Rivian Plummets 6.16% Amid Volatile Intraday Action: What's Fueling the Selloff?

Summary
• Rivian Automotive (RIVN) trades at $13.55, down 6.16% from its $14.44 previous close
• Tesla (TSLA), sector leader, gains 0.24% as automotive peers diverge
• RSI hits 81.58 (overbought), MACD histogram surges at 0.247

Rivian’s sharp intraday decline has ignited market speculation, with the stock trading near its 52-week low of $9.50. The selloff contrasts with Tesla’s modest gains, highlighting divergent dynamics within the automotive sector. With $50.6 million in turnover and a 6.68% turnover rate, liquidity remains robust, but technical indicators suggest a critical inflection point.

RSI Divergence and Overbought Conditions Trigger Profit-Taking
Rivian’s 6.16% intraday drop follows a technical overbought condition, with RSI spiking to 81.58—a level historically prone to correction. The MACD histogram (0.247) and bullish 30D/100D moving average crossover (12.817 vs. 13.404) suggest short-term momentum, but the stock’s collapse to $13.38 (intraday low) indicates profit-taking after a 52-week high of $17.15. Bollinger Bands show the price near the lower band (11.05–14.25), signaling oversold pressure. High turnover (6.68%) amplifies volatility, as traders react to divergent technical signals.

Automotive Sector Splits as Tesla Gains, Rivian Falters
While Rivian’s shares crumble, Tesla (TSLA) edges up 0.24%, outperforming peers. The automotive sector’s mixed performance underscores divergent investor sentiment: Tesla’s production growth narrative contrasts with Rivian’s valuation challenges. With a dynamic PE of -4.95, Rivian’s metrics remain unattractive relative to sector leaders, compounding short-term selling pressure.

High-Volatility Options and ETFs: Navigating the RIVN Selloff
• 200-day average: 12.96 (below current price)
• RSI: 81.58 (overbought)
• Bollinger Bands: 11.05–14.25 (price near lower band)
• MACD Histogram: 0.247 (bullish divergence)

Rivian’s technicals suggest a critical juncture. Key support at 12.37–12.42 (30D) and resistance at 13.75–13.88 (200D) define the near-term range. High implied volatility (IV) in options—particularly the RIVN20250919C14.5 and RIVN20250919C15—offers strategic entry points for directional bets. The absence of leveraged ETFs shifts focus to options liquidity and gamma exposure.

Top Option 1: RIVN20250919C14.5
• Code: RIVN20250919C14.5
• Type: Call
• Strike: $14.50
• Expiration: 2025-09-19
• IV: 55.06% (moderate)
• Leverage Ratio: 84.87% (high)
• Delta: 0.241 (moderate)
• Theta: -0.0349 (high time decay)
• Gamma: 0.265 (high sensitivity)
• Turnover: $61,972 (liquid)

This call option balances high leverage and gamma, ideal for capitalizing on a rebound above $14.50. A 5% downside scenario (targeting $12.87) yields zero payoff, but its high gamma ensures responsiveness to price swings.

Top Option 2: RIVN20250919C15
• Code: RIVN20250919C15
• Type: Call
• Strike: $15.00
• Expiration: 2025-09-19
• IV: 59.55% (high)
• Leverage Ratio: 61.73% (high)
• Delta: 0.2356 (moderate)
• Theta: -0.0241 (moderate decay)
• Gamma: 0.1817 (moderate)
• Turnover: $106,693 (liquid)

This contract offers a safer IV profile and liquidity, suitable for a bullish breakout above $15.00. A 5% downside scenario (targeting $12.87) also yields zero payoff, but its moderate theta reduces decay risk. Aggressive bulls may consider RIVN20250919C15 into a bounce above $14.37.

Backtest Rivian Automotive Stock Performance

Rivian's Crucial Crossroads: Key Levels to Watch for Reversal or Breakdown
Rivian’s 6.16% drop has created a pivotal technical setup. A break below $13.38 (intraday low) could accelerate the slide toward 11.05 (Bollinger lower band), while a rebound above 14.37 (intraday high) may reignite short-term bullish momentum. With Tesla (TSLA) gaining 0.24%, sector divergence persists, but Rivian’s overbought RSI and bearish divergence suggest caution. Investors should monitor the 200-day MA (12.96) and 13.75–13.88 resistance zone. Watch for $13.38 breakdown or a reversal above $14.37 to define the next move.