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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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Boeing - Towards Understanding How One Must Learn To Pick Your Battles.

A multitude of factors have kept Boeing down since my last blog about it in April. What happened this morning was a touch unusual. First the five-day and one-day chart.
Now this. Can you see the morning jump at 11:00 a.m.?
The top reason for looking for opportunities like this is that the weekends often wash away negative sentiments if only for a brief period. These are "out-of-the-money" Calls with 4.5 days of trading life in them. If they had only one or two days of trading life in them then the risk of trading them would be too great. Note how the volume of contracts traded greatly exceeded the open interest. Traders got in and out. Traders recognized a break-out pattern. What's going to happen next is anyone's guess. This is short-term options trading. Stocks in the 200.00 dollar price range offer more opportunities like this than stocks trading under $100.00. That's just the way it is. Let's now look at this morning's action in Fisker. It's a totally different option trading experience.
What happened to cause this jump?
Yes, their Call options popped. Two different types of trades, two different situations. How would anyone have any advance notice the Fisker news was about to happen? Would you want to be sitting in Fisker Calls when the stock has been disappointing for such a long time? Not really. In option trading, you have to learn how to pick your battles.

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