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The Sliding Door Syndrome - Hertz

 Open the door and guess what might happen? Who knows which way the winds will be blowing. The used auto car market got dumped on last week in the U.S, especially on tariffs new.  Trump said he might raise the tariffs on cars to more than 25%. It's a fickled  market. Here are a few of the sell offs. 1) Carvana Company. It sold off over $21.00 dollars on the day last Friday. They have a reputation for having share manipulations with a long history of  insider "buying-and selling-activities". They have a short interest of 5.3% . It didn't help much that the DJIA was down over 700 points on Friday. 2} Carmax also sold off on the week. They have an earnings report coming out and that could cause the stock to drop but maybe not. It could actually rally. Here is it's one week chart and a conference call dial in number. Listen to it if you like. I might be. Now here is a look at the 65 series of Calls on this stock that expire this coming Friday.  On Friday morning at ...
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"Ford" Down One Dollar On The Opening.

That's a huge number and it happened in the first thirty minutes of trading. For an option trader it doesn't really matter why. How do you profit on such a move? It's a Thursday. Do you buy "Calls" that expire tomorrow? No, you look one week down the road.
Did I buy any? Well I wonder if the dip is so significant that any kind of a rebound will be a struggle. I would buy the stock now but not the options on it. If you buy for example ten of the "Ford" eleven dollar "Calls" for May 21st you will be shelling out lets say $460.00 for a position that might be worth $660.00 on a twenty five or thirty cent rebound. Numbers like that don't excite me very much. Perhaps the "Calls" six or nine months out or so would be a better way to go. Here is a look at a January series of "Call" options. Look at how much they sold off in one hour of trading time! For options nine months out that's a big deal.

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