Lessons from $LCID options loss: Avoid bull traps in downtrends.

This post, detailing a beginner's 60% loss on $LCID calls, offers critical lessons for options traders. The failure is attributed to trading against a strong 'long term downtrend' despite short-term bullish technical signals (golden cross, rising RSI). Comments highlight that $LCID is a 'highly volatile stock' where 'theta decay takes a lot out of the contract's value,' and the setup was a 'bull trap' due to 'weak fundamentals.' Key advice includes: considering higher timeframes, protecting capital with stops, using smaller position sizes, and prioritizing fundamentals over isolated technical signals. This suggests avoiding speculative short-term call options on volatile stocks with underlying weakness, or even considering bearish plays on $LCID.