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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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The Markets Never Stop. The Stock Lowes And Forward Looking Thinking.

An earning's report came out and some of the reason's the stock dropped made sense. Let me tell you what happened and why. Lowe's sold off in price over $12.00 in one day on an earnings report. How bad was the report? Well that is something that is debatable. Some people would say that past sales are not a good indication as to what might happen next.
Not many option traders attempted to trade in it. Some traders derive more pleasure in playing the rebounds after these types of announcements come out.
Here is what their C.E.O said. It is her job to try to put was a positive spin on things. Every word she uttered was well rehearsed.
Lowes and Home Depot are always difficult to play because their stories can be spun in so many different ways. On a different note, the Put options five dollars "out-of-the-money", which were the 265 series of Puts were a cheaper and a more profitable way to play this action than the 270 Puts. Yet then again, if the stock only dropped five dollars then that wouldn't be the case.
When you see something that say $6.30 up $3.96 that means the Puts ended the previous day at $2.34. Learn to pick your battles. Lowes came back a bit the following morning. Home Depot did not as that stock might have dropped in sympathy.
Now this. The market never stops. Lowes on the following morning was trying to shake off it's earning report. Florida still needs to be cleaned up.
Let's see if these Calls will have some strenght. Here they are on Friday morning, the day they expire.
This is an example of playing short term rebounds.

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