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What Happens When You Get Four Stocks All In The Same Sector Going Up In One Day On A Monday?

First of all it usually means something good is going to happen in the sector. It doesn't really matter what it is or why. This time it's in a sector we can call "used vehicle car sales". Some option traders trade exclusively in this sector as you sometimes see blocks of 20, 25 or 50 contracts trade at one time. Well, not so much as of late. It's big "retail-money" or trades made by wealthy individuals. Why spend millions of dollars building up a car dealership empire when you can follow and profit from what is happening in the industry just playing stocks and options on it in the right direction? That plus the advantage being able to take holidays when ever you want. Here they are. 1) NOW HERE IS A CHART OF CARVANNA. I have done recent blogs on this one. Here is it's five day chart. Is everyone hoping for interest rates cuts? (Jerome-Powell-Jackson-Hole Annual Summit) to come later this week, just another speech by some old man). If rate cuts star...
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A Follow Up On The Costco Blog on Friday.

It's late Monday morning and the markets are flat to slightly down.
In our last blog on Friday we talked about trading Costco options and showed how it surged in price on Thursday and Friday. This morning there was a pause and these "at-money" one week out Puts had a nice short term bounce until Costco decided to go back up again. Here is it's morning dip.
Now here is how the Puts that expire this Friday reacted.
What's missing is the price these Puts closed at on Friday before the weekend. They closed at $10.51. Then in this mornings dip they hit a high of $17.50. Not a bad return for a short term option trade. Monday mornings are sometimes devoid of market chatter and times when stocks stall out or take a pause. Playing options on stocks in the $1,000 range throws different tricks at you.**** A look at it's one day trading activity.
Once the stock started charging up there was no looking back. Many daytraders do not like holding options overnight with the exception of holding options over a weekend. For interest only, look at how the 1025.00 Puts closed the day.

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