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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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Biden -Tilray - Thank You Joe

Look at this chart on Tilray.
On Thursday morning I noticed that one of my screens tracking marijuana stocks showed everything jumping up. That has never happened in recent past so I knew something was up. Can you see the little jump I am talking about on the five day chart above? I jumped in and then I jumped in the last hour of trading. Here is the option trade I did. I purchased options that still had a few months time in them.
The bid of $1.22 ask $1.45 was actually a Friday morning opening reading. I sold out to quickly. Better safe than sorry. Now here was the news.
Here now is how Tilray closed the next day, a Friday.
If your not up to speed on Tilray, here is it's five year chart. So much money has being wasted to get to this point. All these stocks in this sector are like wounded soldiers still standing. Will todays good attract additional interest? That's the new question.
So what are some late to the party option players now doing. Some are looking at the 3 series of Call options with a January 2023 expiracy date the mindset the stock will pop again. They might be right. Buy the 3 series and sell the 5 series against them. Here is how they traded on Friday.
I like Village Farms better as I recently read that they provide the Ontario market with the top two brands of marijuana. One brand has a 16% market share and one brand 15%. One final note. With the profits I made on the above trade I purchased Sundial Call options. I have written about this company before. They are based in Western Canada and are now also investing in the booze business. Their focus this year has being to acquire more retail outlets.
Options on two dollar stocks are more interesting than options on three dollar stocks.

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