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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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Ford Down Seven Cents On The Day Going Into The Closing

Is this an opportunity? Ford nearing the close on a Wedesday with Call options on it that expire in two days. First the five day and then the one day chart.
Now look at how the twelve series of Calls traded today towards the end of the day.
Now a different look at the same thing.
Note they closed the day before at $.23 cents and hit a high of $.39 cents. That was a trade in itself. Now what? Well the chart looks kind of ugly as it has not tested it's previous lows so jumping in to play the short term reversing upwards looks like a scary proposition. That plus buying into options that expire in two days often quickly lose half of their value if the stock ever decides to go sideways for a day. Most option traders overlook the potential of succeessfully of trading Ford options. Let's see how this situation plays itself out. I have talked about situation just like this several times before. One other note. Ford sales were up 7% last month, then to be revised to being up 11.2%. Is that a trend we can expect to see going forward? Probably. Here also are how other auto stocks traded on the day. It was a mixed day.
** What do I find unusual? The open interest number versus the number of contracts traded on the day. It tells us that not many option players are trying to daytrade it. Many option holders are stuck in them at higher prices. It's trading patterns are fickle. So many option traders pile into Tesla instead and hope for $5.00 or $10.00 price swings. That's a different game. One more topic is the topic of Ford Calls one week out. Do you need that much time? Not really. Yet think of the downward pressure that the next week out 12.5 series of Calls have indured. Here they are.
Look at the interest that they are attracting. News the next morning June 13th.
This is news which will be quickly discounted. Now a comment about this chart. It doesn't really scream at you to be considering the upside.

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