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A Look At "The Bids And Asks" On Two Different Series Of Put Options That Expire In A Few Hours

On July 3th the markets were closing at 1:00 p.m. with July 4th also being a holiday. Many traders were disconnected from the markets. It is holiday time. Let's look at these two different option series. 1) Boeing. It jumped up in price over $4.00 in early market trading. Boeing does that sometimes on Fridays. It's 10:15 a.m. and here are the slightly "out-of-the-money" $215.00 series of Puts which are just over $1.00 "out-of-the-money". The stock is at $216.21. These Puts expire in less than three hours. If Boeing started to give back some of it's gains these Puts could be worth big money.The stock is at $216.21 and the striking price of $215.00 isn't really all that far away. Look at how cheap these Puts have suddenly become. What ended up happening? Here is a summary of how Boeing end up trading on the day. Boeing never ended up selling off to below the $215.00 price range. The 215 Puts ended up expiring worthless. *** There was other ac...
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Sweet Spots In The Market And More Used Car Market Observations.

This blog is yet another blog about trying to day trade Carvana again. Why? Well Carvana as of the last couple of weeks is in a sweet spot and seems to be powering upwards. Last Friday as I reported in a previous blog it jumped $12.78 in one day. Players in the the "American used car industry space" are reporting their quartertly earning reports and they are all good. Consumers in the last few months where rushing to by cars before the tariffs kick in. Coincidentally,the party may soon be coming to an end.
.......
Now lets jump ahead to 11:21 a.m..
Notice the volume of trading in this option series picking up? After three days of rising prices more traders are starting to respect this stock. He is it's five day chart. The path forward is now unclear.
Is this softening of pricing a concern? Would I say to buy Puts? Not really.This looks more like a slight pause. I wouldn't be thinking about Puts unless something really scary started to happen. Now this.
Now a 1:00 p.m. reading. Things have gone flat. Something new must be factored into this equation. The markets will be closed this Friday and they close early tomorrow at 12:30 p.m.. There might be some action in the morning however many traders will be off on vacations so the morning action, if any will be shortlived.
If we look at other companies in the same space their stories are pretty much the same. I just listened to a "Lathia Motors " earnings conference call and they are upbeat about their path going forward.
Here are how the 340 Calls are sitting. Most traders will not want to hold these options overnight tonight. If the markets open lower on the opening they would be in trouble.
Here is how Carvana closed the day on a Wednesday.
Now the action on Thursday morning. It's Carvana. The stock did not disappoint the Call option holders.
Here is how the markets are doing at 10:30 a.m.
Option players still holding these Calls are braver than I would be. Now here are the closing prices on the 340 Calls and it's day trading chart. Notice the sharp sell off in the morning and the sharp rebound!
The spirit of Cavana was still alive.I helped that the DJIA had a strong day.
What is there to learn from this blog? Well holding Call options overnight going into the last day of the trading action is not a smart thing to do. If that's all you learned from this blog that's enough. On a different note, I think all of the stocks in this sector are reaching a peak. Why? Well, here is what others are saying.

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