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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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Caterpillar and Boeing

Here are their five day charts. Caterpillar was down $41.61.
Boeing also got hit. It was down $36.72
It's Sunday night as I write this and the DJAI futures market at 10:44 p.m. is down 906 points. How can you use options to play this? Well Put options purchased two weeks ago would have worked wonderfully well. That was then and now is now. What to do. The markets look ugly for tomorrow. Just stay away. The hourly swings in the market can cost you money. Come back in a month's time. Nothing makes sense right now. Last Friday was a unique day. The markets were tanking and options on stocks were expiring the same day. Look at this chart of Eli Lilly last Friday at 10:42 a.m. The stock as down $60.20.
Now look at how these Call options closed the day.
With one day options the premiums for time value are very low. Buying any Call option tomorrow (Monday) will have an expiracy of April 11th (a Friday) meaning baked into the option's pricing will be a premium for time value. Thats not a good thing. But wait. At the start of last week I did a blog about Carvanna and it had Call options on them that sank on Monday morning and then came back up strongly in the first hour of trade. Could that happen again tomorrow? Not really. The weekend rallies against Trumph were to great. There will be nothing Trumph can say or do tomorrow to save the markets. Now is not the day to be trying to outguess the markets. That will change as the week progresses. For now just stay away.

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