Mike Khouw watched his Rivian trade collapse after a dilutive share offering tanked the stock. He revisited it. Not abandoned it. Not exited with dignity. Revisited.
This is the financial equivalent of texting your ex after she married someone else. The stock went down because the company printed more shares and handed them out like coupons at a grocery store. Supply increased. Price dropped. First-week economics. But Mike saw this wreckage and thought yeah, I should circle back on that.
Traders love to call this conviction. What it actually means is you bought something, it went to hell, and now you're explaining why losing money was actually part of the plan all along. It's not resolve. It's sunken cost fallacy wearing a Bloomberg terminal as a Halloween costume.
Rivian diluted shareholders because they needed cash. Companies do this when they can't fund operations with revenue. You know, that thing businesses are supposed to generate. Instead they issue new stock and every existing share becomes worth less. Basic math. The kind that makes people angry on Reddit.
Mike's position is now underwater but his resolve remains unshaken. That's the quote. Unshaken. Like a martini James Bond ordered in 2021 and is still nursing in 2026 even though it's warm and has a fly in it.
The share offering was announced and the stock tanked immediately. Cause and effect. No technical indicator predicted this. No chart pattern warned him. The company just said we're creating more shares and the market said cool, each one is worth less now. Mike's charts did not save him. His moving averages did not send an alert. His Fibonacci retracement didn't retrace sh*t.
He revisited the trade. Translation: he's still holding and needed something to say on television that wasn't I'm down bad and my stops didn't trigger.
Photo by Behnam Norouzi on Unsplash
Leave a Comment