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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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Let's Think about Going For a Ride "Boeing"

Monday was a long and sideways day for "Boeing". Things didn't look so great an hour into this mornings trading. Here is it's one day and five day chart. It's first quarter's earning report is now history.
Here now is how one series of options traded on it. The "C" stands for "Calls" and the "P" stands for "Puts". Look at how the daily trading volume on the "Call" side is so much greater than on the "Put" side. Also look at how the open interest are smaller than the daily volume of options traded. What that tells us that traders are playing interday swings. It's safer not holding onto overnight postitions. Do you want to be part of this action? The nice thing for Monday traders on short term "Call" options is the safety of having four trading days left in this series.
Let's check back at 10:30 a.m. tomorrow to look for a playable swing. I missed 10:30 a.m. self imposed check in time. Here is the action at 10:45 a.m. The DJI was down 275 points. Was 10:30 a.m. was the time to get in? You decide.
Yet another look at noon. Does it now look like it wants to bounce?
Here now is a look at another series of "Puts", the 240 series of "Puts" at 12:20 p.m.. Does this now give you a better appreciation of the power of playing the downside?
Now it's 2:10 p.m. and here is what I did. I got out of what I bought during the morning. Why did I get out? One reason is that this is a teaching website and I want to show my readers that short term traders can poke away and eak out small returns. Are you also able to see how at about 2:45 p.m. it looked like the rebound was slowing down. It's difficult at times to be riding a wild horse.
In at $3.40 and $2.85 and out at $3.72 .
**** an end of the day update... the markets came charging back and I got out to soon. Here is what these options ended up closing at. More about my thoughts on this later. This turned out to be an exciting day for mid week option traders.
It's strange how noon time turned out to be the low of the day.

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