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Carvana On A Tuesday

 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 ...
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A Follow Up to A March 29th Blog About Options in the $5.00 and $10.00 Range.

 First, look at how these three stocks are popping this morning when the overall markets are trading down. Options on stocks in the $5.00 and $10.00 range can surprise.

Here is todays action, a Monday morning in the first hour of trading.



All three of these companies operating in the same space are jumping in unison. Now look at this printout of my May 28th blog.


Well back then I was talking about the power of long tern options and I used the example of a "Unusual Machine" Nov 21st Call with a five dollar striking price. Now here we are only a few days later and look at where this series of Call options are now trading.

Note the open interest in these Calls have decreased as earlier traders have taken their profits and run. Once again,  longer term options on $5.00 and $10.00 stocks can surprise.  All three of these companies don't really have the earnings to support these prices  so options on them are dangerous. Why not do you homework and make lists of stocks in this price range which have options on them? 

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