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 ...

Netflix and the Future Value of Income Streams

Netflix had news.
On the release of this information the stock jumped and here is where it gets really crazy with "out-of-the-money" Call options that expire in two days. Call it insane. What I am about to show are random samplings of this action.
For years now articles have being written on the Netflix business model and what bothered market pundents was how they were losing money on customers giving away their access codes to other users. Other questions. Do upticks like this trigger automated tracking systems set off alarms that catch jumps like this within seconds of these meteoric liftoffs? Do C.E.O's tell their son-in-laws of this impeding action. Did the fellow driving the Porche 911 in front of you buy it with the profits made from acting on insider news? Can you buy Disney or Roku tomorrow and catch similiar gains? In two recent blogs this week I talked about Boeing Calls jumped in price on Biden news about how he was handling one days news on the debt crisis and how Harley Davidson had great earning reports only to watch the stocks price drop on spurious comments about potential headwinds ahead. Were such comments warranted? The markets are full of trickery. Things to think about when you are on the bus in the morning beating yourself up because you wasted money on a Starbuck coffee. Look, option trading isn't for everyone but I am hoping that little blogs like this will raise eyebrows.

Comments

Popular posts from this blog

Living on Kraft Dinner?

The Little Engine That Could

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