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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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Ford and The Call and Put Option Game On It Has Slightly Changed.

Look at this chart. Do you recognize something a little bit different in the striking prices? They have changed and here is proof.
Forget playing the 12, the 12.50, the 13 and the 13.50. Calls or Puts. Now they are all 11.85, 12.35, 12.85, 13.35 Calls or Puts. What is now different is that the striking prices have now shifted downwards by .15 cents or upwards by .35 cents depending on how you look at it. Does it make any difference to option players? Has it become slightly more challenging to do the math? Not really as everything functions just the same. Just learn to get use to it. That said, here is how the stock Ford is now trading in February. .
Now look at these same Call options on the morning of Tuesday February 22nd two trading days later.
The market tanked on Monday and the executives at Ford are making comments that are casting their operating realities in a bad light. Institutional investors have limited patience for these kinds of outbursts.
Then this.
Ford's public relations department needs to coach their management to button their lips. Here now is a printout of the same Call options we showed above two days later. They have tanked.
The bottom line is the playing Call and Put options on Ford can be a wild game when there are so many moving parts in play. Yet then again these price gyrations make for interesting trading opportunities. Don't be afraid to play them.* The longer term Call and Put options like the Ford 12 and 13 and 14 Calls remain "as is". It's only so far, the near term Call and Puts options that have the new striking prices.

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