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CarMax Puts?

 Here is the number. Call in to listen to their just released quarterly report. You won't have to talk to anyone. It is 800-839-1247. In about five days this link will disappear. Please listen to it. I listened to all of it once and to the first half of it two times. What I learned is that their retail car sales on the quarter compared to the same quarter a year were up 6%. They purchased 336.000 vehicles from the public, up 7% and 48.000 from dealers up 38%. Their average retail sale price was $26,100, down $400.00 per vehicle from last year. They doubled their share buy back program. AI technologies are now helping them operate more efficiently. Everything seems positive. But wait, we are talking about  the used car business and what could happen if consumer confidence suddenly starts to wain? Look at it's three year chart. It now sees to be hitting a rough patch.  Now a one month chart.  All of this talk about tariffs and what level of tariffs will be imposed on n...
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A Week With Boeing Up $35.00

"Boeing" is up over eleven dollars on the day and the DJI is up over 350 points. It's 1:17 p.m. in the afternoon on a Wednesday. What are the odds of being able to make money playing "Boeing Puts" on the downside which expire this Friday? 50:50? The real question is why would you want to? The stock is now up over twelve dollars on the day. Here is the daily chart and here are two near term "Put" option positions. Would now be a good entry point looking for a reversal?
Notice in the twelve minute difference in the period of time between these two printouts "Boeing" has gone up by almost a dollar. Other stocks like "Disney" and "Caterpillar" sometimes have five dollar a day rallies and sometimes they don't stop going up for a couple of days. When a stock goes up twelve dollars in one day you can't really wander in willy nilly hoping for a reversal. Now here is an end of the day chart on "Boeing". Look at what today's "Calls" did. Notice the extremely high number of "Call" options traded.
Now a next day March 11th 10:00 a.m. update. "Boeing" continues to charge up. There doesn't seem to any real news as to why. If your holding "Call" options one of the most difficult things to do is to avoid the temptation to sell out.
What a ride for the "Call" holders. This type of action is someone unusual but "Boeing" is an amazing stock to watch/play when it is on fire. A Friday morning pre-market report. "Boeing" is up something like $35 dollars since Tuesday. Once again what a nice ride for any "Call" holders. Here also is a five day chart after the closing bell.
Now we end the week with the followng news.
Here now again are the March 12 240 "Calls" which are up ten-fold from where they were only a few days ago. Look at Boeing jumping over $17.00 in one day.
What is there to make of all of this? Well, keep this blog in the back of your mind and six or ten or fourteen months down the road when you see it rallying at the start of the week. Don't be afraid to go along for the ride.

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