Posts

Showing posts from June, 2025

Featured

Tesla And Wondering About One Day Options. Is This A Crazy Topic? You Decide But Hear Me Out First.

Tommorrow is Friday and I don't have time to babysit these options all day. You might find yourself in the same situation? Look at it's one day chart today. Now here is how one of it's Call option series were trading in the afternoon two days ago. Here is how this same series of Calls closed today, a Thursday. One of the things this tells us is that these options dropped in price by one half since 11:00 a.m. this morning. At one point in time they actually dropped down more than that before they started to crawl back up again. So it's a flip a coin situation right? Well not really. My best experieces trading Tesla options are in playing it's last day "at-the-money" or slightly "out-of-the-money" Call options on Friday starting around 1:30 p.m. and getting out around 3:00 p.m. It helps if the stock keeps rising all day like it sometimes does. Trying to outguess this stock on a Thursday evening is a waste of time. Waiting for the stock to go up ...

Carvana Again. The Crooked Stock.

Image
 Donald Trumph talked tough on tariffs this week. All cars are expected to cost more. Car makers will take a hit and used car retailers will be able to squeeze out higher prices. So it goes in theory. That plus the DJIA had a good week.  Here is how the Call options on Carvana traded on Friday. If you read my recent past blogs you will see the same chart performances where Carvana jumps up.. Here is it's five day chart. Look at how the Call options preformed on Friday. The stock was up $12.78. The one day calls options (the last day to expiry Calls shown below} did wonderfully well. Look at the high and low numbers on it. Look again at it's five year chart. Jump in, jump out. If you look at a few of my recent blogs you will see how often it jumps up and down. If you hit one of these moves it will make your week. It's jumps up and down are not really related to any news. Costco is another stock with wild option swings. Trading Costco options is different. Professional writer...

Costco Can Move .

Image
 Costco doesn't always follow which way the markets moves. Look at these Costco Calls this morning which is a Wednesday. First the Calls. Only six contract traded in the first six minutes, some as low as $5.30 with a current bid and ask of $6.65-$8.95.  $8.00 dollars would probably get you in now . Now it's Puts. Last at $5.20 but $4.80 would probably get you in. Here is it's five day chart.  Two days ago it was trading for $25.00 dollars a share less. Now a recap of the end of the day's readings. The DJIA was only down 106 points and look at what happened to the Puts. Now it's five day chart. Here is my point. In recent blogs I have talked about massive one day moves on a multitude of stocks. That's simply the way that the markets have worked as of late. Look at Tesla's recent chart as an example.  When you see a stock in the $1,000 per share range, especially one that is up on the opening on a Wednesday (which is the day of the week the markets can shift d...

Carvana On A Tuesday

Image
 It played the same game as Carvana also did on a Monday. Look at these three charts. 1) It's up on the opening and the Puts at this point (they are "out-of-the-money") are trading at $3.25. Now the chart changes. That's the same thing it did yesterday. Yesterday it topped out around 11:00 a.m. and today it topped out around 11:30 a.m.. Now this. It starts to rebound. So how do you think the Puts did on that downturn. We here is a look just after the fact. You can see how high they went. They went to $4.82. If you look at the chart more carefully you will see that at around 11:30 a.m. they actually traded down to $2.60. It's not much of a trade but the point is this stock on day one and day two of the week is tradable. I would argue that this "tradability" diminishes towards the last two days of the trading week. At the end of  day (a Tuesday),  Carvana was only up on the day $2.89. At the end of the day the Puts were basically unchanged from where they ...

Carvana On A Monday Afternoon.

Image
 Carvana had a good week last week. It was up $22.86. I talked about this American used car dealer franchise  in two of my last blogs last week. It's a Monday. Let's look at it's Puts on it which will expire this Friday. What's the point? The point is to illustrate the power of Puts options over a short period of time. Before we do that let me show you how one of it's competitors is trading on the day. "Avis Budget", as you can see from the chart below is on fire. Now let's talk about Caravana. It's now  12:17 p.m.. It's down $4.82. on the day. Is it to late now to buy Puts on it?  Why would you want to? Look at how it is selling off. Had you bought Puts on it forty minutes earlier you now could be selling out at a wonderful profit. Check out it's current  chart below. Do you think that it's on the verge of finding a support level?  It's an ugly looking chart. When you see charts like this what do you think? The last time I did a bl...

CarMax Puts?

Image
 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...

A Recap of The June 15th Blog On The Auto Stocks Like CarMax And Hertz

Image
 I have four stocks to report on. This blog is a follow up to the action I talked about in a June 15th blog. We now have just finished a four day trading week. Here are the highlights of what happened in no particular order.. 1) CarMax.  Here is how one series of it's Call options on it closed on Thursday of last week. Why are we looking at this? Well it shows what the 65 series of Call options were trading at, one week before their earnings report came out.  Would that be a clever time to get into these options in anticipation of good news? The quarterly earnings report were coming out on the morning of Friday June 18th before the markets opened. If you want you can now call a toil free number to listen in on their earnings report. They will keep that line open and free to listen to for a week or so until up to the end of June. The number to call is posted in the past blog. I called in an listened to it. Two of the things mentioned in it were their average vehicle sale p...