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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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The Concept Of Playing Caterpillar Calls From An Oversold Situation

There is a danger in playing oversold situations. How do you truly know it's oversold? Well last week there was a total blowout in the markets as it kept dropping everyday. Each day last week was a blur to the downside. What are weekends all about? They are a reprieve in situations like this from all of this negative energy. Thing's can't go down forever. Here is Caterpillar's most recent chart.
So this morning, with fresh minds coming to the screens an uptick could be in sight. I would think so, I watched this mornings action. Look at these printouts. I was tracking one of the series of Caterpillar's Calls. It was lonely experience. Few people were watching this action, or lack of action. There were no trades in this series of Calls in the first few minutes and the speads were far apart. Where was the rebound? Look at this..
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Wow. Only 2 contracts traded 9 minutes after the opening bell and 31 contracts traded in the 225 Calls an hour into the trading session. No one saw an uptick coming but it did. Let's move on. Here is how these options closed the day.Trading options on series like this (a big name stock after a weekend reprieve from the slaughter and no real volume on the Calls) is a good strategy.
No volume, to me that's a good thing. Tomorrow should be a good day. ( the Yahoo chart cut out at 2:00p.m.)
****** A next morning March 14th update. These options are up.
At 10:45 a.m. look at how light the volume of trading is. Look at a morning jump to over $6.00 per contract. Amazingly next to nothing in the way of Call options traded on it. Yet it's Caterpillar which has a huge following. I find that all so strange. But then again option traders are afraid to play options on this stock because it's not like playing Tesla or Boeing which both have more knee jerking reactions to ongoing news. That's the way I see it.

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