Maximizing Potential Gains from Rivian despite Recent Losses - A Guide to Smart & Informed Investing
Rivian has been a volatile stock since its IPO, with prices hitting record lows recently. Many investors are looking for ways to recover their losses after buying in at $145 per share and seeing the stock drop to $97. There are many options available, including selling now and taking advantage of the loss on taxes, buying more shares to average down the cost basis, or simply sitting on the stock and waiting for it to go up again.
For those who can afford it, buying more shares is a great way to average down your cost basis. However, if you don't have enough short-term gains to offset the losses, you can only take up to $3,500 in loss and carry the remaining amount into future years. Additionally, when buying or selling stocks, it's best to do so in blocks rather than all at once.
It's also important to remember that you haven't lost anything yet unless you sell right now. Sitting on your hands is usually the best thing to do until Rivian's quarterly reports improve and the stock goes back above $100. Selling covered calls is another option if you own 100 or more shares. This strategy allows you to make money no matter what happens with the stock price.
Ultimately, Rivian may become a generational investment but this isn't certain yet. It's important to look at the company from an informed perspective and not get caught up in speculation or FOMO. Do your research and consider all options before making any decisions about your investments.
It's also important to remember that investing is a long-term game. Even if you lost 40% in Rivian gains, it doesn't mean you should give up on the stock altogether. There are still plenty of opportunities for growth and success with this company, so don't be too quick to sell your shares just yet.
Finally, make sure to diversify your portfolio and invest in other stocks as well. This will help protect against any further losses from Rivian while allowing you to benefit from potential gains elsewhere. Investing isn't about chasing returns; it's about building wealth over time through smart decisions and careful planning.
I lost a lot of money on Rivian after the stock hit a record low. What does everyone recommend to recover?
You have many options, 3 options are: 1. Sell now and take advantage of the loss in your 2021 taxes. 2. Buy more stock and average down your cost basis. 3. (my recommendation) RELAX. If Tesla is any indication, Rivian stock will fluctuate greatly in the coming years. Unless you need the cash, just sit on the stock. For full disclosure, I am in a similar position (I waited for it to drop after it hit over $140 but apparently didn't wait long enough). I have a side IRA account that all I invest are in green companies so have 20+ year horizon on the account. Sitting on your hands is definitely the best thing to do now and to those who can, get in more now but with good risk management.
How many shares do I own?
If it’s 100 or more, sell covered calls until you get back in the black. Obviously you need to be slightly familiar with options and roll your calls if you end up in the money about a week before expiration but it’s the best way to always make money no matter if your stock price sinks or goes up. You haven't lost anything if you don't have the money in hand.I hear people all the time say I lost X amount of money in the Stockmarket. Sorry you haven't lost anything yet as you haven't cashed anything in yet. All good advice above, also don’t overpay. $140 was obviously too high given it quickly settled down to $110 and now $90Given the poor q3 update. If future quarterly reports are better then it will go back above $100 but the days of $150+ are gone for a while I think, especially with the Fed ending the easyMoney we have had for the past decade.
Is Rivian a generational investment?
Its really hard to answer without knowing how many shares but keep in mind that, as someone already stated, that its only paper loss at this stage. If you sell, then its a real loss.As for tax loss selling, you need short term gains that you want to offset by the loss amount you've lost. If you do not have any or less gains than the loss amount, you can only take up to 3500 in loss and have to carry the remaining loss into out years.What I typically do in your situation is 1) let the stock (RIVN) dampen out a bit and get to a steady price range. Once there, look for a relatively down days to buy additional shares to average down the cost basis. This concept works if you either buy more than your original ahare quantity to bring the average cost down closer to the current steady state price. Or 2) you plan to hold onto the stock for a longterm holdings where the price increase should happen. Last thing to keep in mind is to buy and sell stocks in blocks rather than all at once. Rivian is not a generational investment today; however, it may become one day if quality holds up and deliveries ramp up.