The CarMax Story Continues.

-
Yesterday holding Calls on this stock turned out to be a walk in the part. See yesterday's chart. Today is a different story. A potential lawsuit is brewing. It is claimed that management provided false guidance. I don't think that this case is going to gain much traction.
Managment said.
So the Calls we were looking at yesterday took a hit and here is how it's afternoon chart is trading.
Rather than looking at the 47.50 Calls we were looking at yesterday we should now be looking at the 45 series of Calls. That's the luxury that "in-and-out" short term daytraders have. Now the 45 series of Calls options that offer leverage on one dollars moves and not the 47.50 series. Here are two different series to look at, one series that expires a week Friday away and one series that expires on November 21st. Next weeks Calls would be cutting the timeline to short.
But here now is the problem. The happy, zippy little chart pattern we saw in the last three of four days is now broken. The fresh lawsuit news is a new minor annoyance.
Yet another problem is that I don't like trading options on stocks in this price range. I like better options on $5.00 and $10.00 stocks and options on $100.00 priced stocks and higher. Here is it's closing day reading.
The October 17th Calls are still ten days away. Let's follow this and see how it turns out. Now here is Wednesday's closing.
There was further weakness. To be continued.

Comments

Post a Comment

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

-
Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

-
Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

-
Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more