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Why Hertz Calls On A Early Thursday Afternoon Don't Work

First the chart. On paper it looks like this chart could rebound. Here is one series of it's "in-the-money" Calls. Here are three reasons why this situation is to dangerous to play. 1) There is a Avis Budget Group Inc. implosion happening today. A really big one. Read my previous blog. That's not directly related to this company but it makes the sector a bad space to be in. 2) The "bid-and-ask" spread is to far apart which helps to give the market makers some extra insurance. That plus the volume of trading is very light which also seems to give the house an advantage. Look Walmart.The spread is about the same but you can split the middle without affecting the "bids-and-asks" and the volumes are so much better. I like trading in that kind of space better. 3) Hertz is not the kind of company which comes out with daily or weekly updates. Contrast this to the stock Ford which seems to have good and bad news coming out every other day. With Ford so...
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Roku Jumped in Anticipation Of A Good Earnings Report

Only to fall again. Look at this five and thirty day chart.
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Yet thats only part of the story. Look at it's year to date chart.
How bad was their earnings report?
Do you think their pain and suffering is all now behind them? The stock is down 38% on the year. All I know is that they still seem to be making a pile of money. On a different note and in a different industry a stock named "First Solar" was stuck in neutral a few months back because interest rates where to seemingly high and companies in that industry were cutting back on the size and number of projects they were working on. Since that time and for whatever reason the stock in on fire.
Both Boeing and Caterpillar also crashed last week on earning report releases. There seemed to be a hint of danger present in both companies releases. It's almost as if there was a domino effect. Next question? Why is Netflix gettng beat up? Look at it's chart.
Is it partly because other companies like Disney are beefing up their efforts to become a bigger player in this space. Yet then again, the more things change the more they remain the same. A few years back all eyes were focussed on Netflix tweeking their business model on advertising policies and on the issue of their subscribers sharing their passcodes. Those issues are now largely history. We must not forget that Roku has 80 million subcribers. There is still plenty of money for all to be earned. The lesson to be learned is that following sideways moving stocks doesn't always pay off. ** See how I struggled with Roku in a blog I posted on April 15th. It's all to easy to get fixated on sideways moving stocks. * Roku closed down $.55 cents on the week and as mentioned previously in my April 15th blog, Cathie Wood the founder of "Ark Investor" now has some skin in the game.

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