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Costco Options With Two Days To Go. Something To Consider , As Strange As It Might Sound

First, Costco is down $44.79 over the last ten trading days. The company sells food and everyone needs to eat. The chart looks like it might now want to rebound. Down $44.79, it's crazy that it could sell off that much in such a relatively short period of time. What about other stocks in this price range like Netflix? Well the Netflix stock is priced at even a higher level. It's at $1,257.00 today and yesterday afternoon it was at $1,213.00. Yes, today it was up $31.30!. My point is high priced stocks can make big moves and that's what makes Call and Put options on stocks like this so potentially rewarding. Most people would never consider trading in Costco options. I get that. More on that later. Now back to Costco doing so poorly as of late. It's now Thursday morning before the markets are open and here is a look at it's "at-money" Calls and Puts. Notice the light volume of the "open interest'. The two numbers reported here are 480 and 358. Whe...
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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.
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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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