A stock trader recently made headlines by turning an initial investment of $16,000 into a staggering $1 million profit in just a few hours. The trader’s success story revolves around Rivian Automotive (NASDAQ: RIVN), a company that has seen a remarkable surge in its stock price, soaring by nearly 50% in the pre-market trading session.

However, the excitement surrounding Rivian’s stock has been marred by allegations of insider trading. A single trader reportedly purchased $14 call options and $13 call options, both scheduled to expire on June 28. With Rivian’s stock currently trading at $16.95 in the pre-market, the trader stands to reap substantial profits if the upward momentum continues.

If the stock maintains its gains and extends them until the June 28 deadline, the trader’s profits could multiply exponentially. This surge in Rivian’s stock price has not been as favorable for short sellers, who have incurred significant losses amounting to millions of dollars.

The high interest in shorting Rivian shares, coupled with the sudden surge in stock price, has raised concerns about a potential short squeeze, which could further drive up the stock’s value. Despite a lackluster performance earlier in the year, with a 43% loss in value, recent developments have reignited interest in Rivian stock.

Insider activity surrounding Rivian stock has been relatively low in the past year, with only seven sales totaling 128,945 shares valued at just over $1 million. However, with the recent resurgence in the stock’s performance, market watchers are advised to monitor any upcoming insider activity closely.

Investors looking to capitalize on the current market trends can consider platforms like eToro, a trusted investment platform that offers a wide range of investment options. It is important to note that all investments come with inherent risks, and individuals should exercise caution when venturing into the stock market.