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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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Deere and Company With One Day To Go. Yes or No? You Decide How Smart You Are.

Let's start with a question. There is one day to go and Deere today on a Thursday dropped over $13.00 dollars on the day. Should you jump into one day Call options on it right now looking for a rebound or wait until the following morning? Moving forward, in the Friday morning's premarkets at 8:30 a.m. we can see that the stock is up $1.50.
Here is proof of yesterdays downward action.
The premarkets are expecting to open higher. Are you to late to the party if you buy in (one day, last day) Call options that is? After dropping that much yesterday it should rebound right? Right? Let's stop. As the writer of this blog I think the real question should be who really wants to be speculating in situations like this? It's so dangerous. Learning to pick the battles you want to fight should be a very big part of this exercise. Yes I sometimes like to play Deer Call or Put options with only one day to go in their trading life but not after a day when it drops $13.00. To me that sets off alarm bells.
This Friday morning opening chart look ugly? the stock may never come back up on this day. Now let me share with you something that should help you to put into perspective how crazy this exercise is and why the stakes are so high. If we backtract only to the start of the trading week look at how different the mindset was back then. "Deere" was trading so much higher in price and buyers were paying stiff premiums with the expectations that the stock was still going to go higher.
Next, brace yourself for this news. "Deere" is down over $17.00 on the day at 1:10 p.m.
What a downward move.
What a move to the upside on this series of Puts.
Here now is how the markets closed and a look at Deere's five day chart closing out the day.
In summary, Deere was up on the opening to attract new Call options buyers and too shake out the Put option players who went into the morning's opening holding onto sizeble positions. That was something I noticed. Then it dropped wiping out the newly minted Call option holders and allowing Put buyers, there were not many of them left, to purchase even more Puts at a reasonable price and then play "one of the of the month's best Put opportunities". The DJI ended up losing almost 1,000 points on the day! That doesn't happen very often. ** Also see my April 19th blog on trading the thirty day out "Deere" Call and Put options.

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