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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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If You Don't Know Anything About Snowflake Don't Feel Bad

It's one of those cloud based companies. I will tell you what they do, it's all kind of complicated. Even after you read this you will still not really understand what they do.
The stock is volatile and I have it on a watch list with other stocks like First Solar, Costco, Netflix, Moderna, Deere and Tesla. These are all stocks I watch with a passive interest and usually take more of an interest in them around the earning report seasons. Of all of the stocks on this list Snowflake is the one I am least connected to. What insights can I bring to the table about what is happening with this company or the industry it is in? None really. Ask me about Tesla and that's an entirely different and facinating story. Some of my best option trades of my life have come from playing options on Tesla. Now back to Snowflake. It had an earnings reports come out before the bell opened this morning. Here is it's one day trading chart the day before which was somewhat unremarkable. Insider's were not jumping in to play the upside before the close. That to me is somewhat impressive.
Now this, a look at it's previous quarterly earning report numbers .
They look pretty good to me. I note that other stocks have recently done well on poor earning reports. So here is todays one day action after their earnings report came out in the "pre-markets".
A big jump on the opening and the 170 Calls, and other Call options jumped up. Look at how high the 170 Calls jumped up to.
Pick fifteen or twenty stocks you find of interesting and watch how they trade on their earning reports. Keep reading little blogs like this to get a flavour of how I appraoch things. It's all very much a self learning experience. Tell your friend about this site and brain storm with them as to what might happen next. You might be smarter than you think when it comes to what might happen next. Here is how Snowflake closed out the week.
Now it's 30 day chart.
Now look at this. You could you now buy the one week 177.50 Calls for next week and sell aginst them the 180 Calls. (It might be to late now make that trade). Spend money to purchase the lower priced Call option and pull in a slightly smaller credit by selling against that position a higher "out-of-the-money" Call. Spreads are something you might want to learn about. Here is how these two series closed on Friday. More about this techique to come. I will keep you informed next Friday as to how this position turned out. I think Snowflake will have a good week given it's strong earnings report.

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