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Is Tesla A Good Robot Play?

There's going to be pushback if Musk decides to turn his auto production lines into robot making production lines. That's a new fear. It is also noted that used Teslas are dropping in value quickly. Tesla was down in price $5.62 last week. How is Musk going to make this new venture work? Might his first generation of robots like his cybertrucks quickly become obsolete? If you think about it, maybe existing shareholders are already lightening up on their stock positions knowing that a bumpy ride could soon be on the horizon. Now a new topic. How much do the "three-month-out-Calls-and-Puts" on Tesla cost? That's a fair question and here is the answer. Now we also need to look at how it has traded in the last three months. The stock is down about $60.00 over that period of time. Anything is possible with these three month out option series. Now this, Tesla drops on the Monday February 23th opening. The markets are having a bad day. Look now at what the May 26t...
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A Recap of The June 15th Blog On The Auto Stocks Like CarMax And Hertz

 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 price per vehicle in this past this quarter vs their average vehicle sale price four quarters ago and their average profit per car, now and back then. With the tariff scares we are now facing, yes their profits should be up. What surprised me was the lack of guidance they offered going forward. Here is it's one week chart and a look at how high the June 20th Calls options shown below traded on the morning their earning report came out.



The gain wasn't crazy high because analyst already had crazy high expectations baked into the stocks price and baked into the price of it's Call options. At the end of the week there was no real money to be made trying to play this action.

2) Carvana. If you don't know about this stock its time to learn. I talked about in a blog a few days ago


On Friday it had a huge run. The Call options went crazy. One day options can surprise. Big money was made here.

3) Hertz is struggling and I talked talked about how options in the $5.00 and $10.00 range can sometimes be your best friend. Look at how it traded on the week with a surprise coming on Friday. What a way to burn the large number of Put holders. There were far more Put holders that Call holders. Once again there was really no money to be made here.



The fourth stock I talked about last Friday was Avis. It's symbol is "Car". It was trading at $121.94 at the end of the week. Here was it's chart last week.

Here now is how it closed this week. It jumped like Carvana.

It's yet another stock in this sector which jumped up over ten dollars on the week.
Many option players follow a handful of automobile producers. It's a segment of the market that they can relate to. Following the antics of a handful well known  automobile retailers can be equally rewarding. 

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