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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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Deere and Boeing, The Second Day In A Row With A 500 Point Day Decline

In this market environment playing the market has become for some traders an hour to hour exercise. Many investors shy away from this method of trading and consider it to be a fool's game. Yet at times opportunities present themselves that are just to good to ignore. First, here is how the markets closed out the day followed by where the DJI index was at at 1:30 p.m. this afternoon.
It got ugly quickly in the early afternoon. Here are a look at Deere and Boeing at that time.
Now for some afternoon Deere "Put" quotes. Deere spent most of the morning in the 398-399 range at which time the 400 series of Puts that were to expire that day traded down to $2.00 a contract. Can you see that?
Here is how this series of options closed on the day. Note the price swing in the day from an interday low of $200.00 per contract up to a high of $1,057.00 per contract.
This you might say was a one time blip. Yet what's going to happen to Put options on a stock in the $400.00 range just prior to the markets losing hundreds of points in the matter of two hours? It's not rocket scientist stuff. It actually happens and I am amazed that more traders are not tuned into this stuff. It's the leverage you get with options that have an expiry date only a few hours away. Yes it's high risk but when the bottom falls out of things like it did today the downward action is often swift, directional and decisive. It's like watching a train reck about to happen. The Boeing story today was much the same. Here is it's one day chart and a look at the action in the Puts. Notice that the 220 Puts were trading for $.50 going into the lunch hour. Look at how high they traded up to. One slice of the action here shows them going from $2.15 per contractto $6.30 per contract in only 26 minutes. Look at the chart below.
Look at the open interest and volumes of contracts traded today in this series of Puts. Boeing always has a large following. Option traders playing the downside watched the carnage happening all around them with glee and were able to make out big time on this one. **** to read yesterday's blog on Deere on the previous day scroll up to the top left icon.

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