Featured

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 ...
Post a Comment

Barron's and Their Comments on the Auto Stocks

1) Telsa. What they are saying is to wait and see if it drops down to $100.00 then buy it. The stock is volatile. U.S. sales of all-electric vehicles grew 45% year over year. Sales of gasoline-powered cars were roughly flat from the fourth to the first quarter, while EV sales climbed roughly 15%. Telsa is still the king of the EV future. 2) G.M. and Ford? Maybe, they say these two stocks should be considered as technology stocks and maybe they warrant higher price/earning ratios. For a decade, their stocks have traded, on average at about seven times estimated next years earnings, while the S&P 500 Index has fetched 18 times. Todays cars require a huge amount of software. G.M. has the Cruise which operates a fleet of self-driving taxis in San Franciso and will apply this driver-assistance system to it's new 2024 Cadillac Celestiq, an ultra-luxury sedan with a likely base price of $300,000. It looks like the big players will survive. All eyes are on Telsa which swings up and down. 3) How is the industry in general doing? Read this.
Will the smaller EV players survive? Will investors continue to have an appetite to support other new upstart electric vehicle players? So many are life support. Here are three other interesting companies in this space to watch.
Now Fisker. Their product offerings look promising and they continue to win design awards.
Can investors make money playing in this space? Well none of these lower tiered companies are making money yet.
But wait. We are still in the first inning. It's all going to be an amazing story to watch going forward. Now wait again. Here is a new story. Fisker jumped 10% in the first 90 minutes of trading this morning and the Calls jumped. Yes there are exciting things happening.
Did you notice the percentage increases in just ninety minutes. I missed it. I was to busy writing this blog!

Comments

Post a Comment

Popular posts from this blog

Living on Kraft Dinner?

Image
What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
Read more

The Little Engine That Could

Image
Walmart again. It's all I seem to blog about. Here is it's five day chart. The stock keeps going up and the option series are set up in one dollar spreads. Even a fifty cent move on the stock moves the needle on these Calls. Look at how this series of Calls was trading yesterday at 3:00 p.m.. Now here is this same series of Calls just before noon today. Thirty days of upward action like this punctuated by the off day of decline. Now notice the higher volume of trading in the series of Calls with the higher striking price. These are the ones's with more leverage. At the same time look at the five day chart on Costco. The two stocks sometimes trade in tandem. Humpty dumpty sat on a wall .... a had a great fall. Someday soon a fall might happen but what a great ride it has been.
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas...
Read more