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Trumph Picks A Friday To Change The Rules.

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...
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One Day Options On One Of The Most Difficult Stocks To Play Options On. Carvana

Carvana has a dubious reputation it can't shake. Insider stock manipulation or something like that. That's old news and now there are more new fears over their accounting procedures and with that comes stock volatitity. You Tube videos also talk about this situation. Here is it's five day chart and here is how their "two-day-until-expiring" Call and Put options are positioned going into tomorrows (Thursday's) trading session.
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Both are crazy expensive however they do offer two days of trading activity. That's a long time for options on a stock like Carvana. Look at the dip and the rebound it had on Wednesday.
Now I am jumping ahead to Friday, the final day of trading on these two series of options. Look at this. First a five day chart showing Thursdays and Friday's action.
Now it's Friday only chart.
So what's important about this one day chart? This. Look at how it's Calls options traded.
The Call holders lost all their money. Now look at the Puts.This series of Puts we are watching did wonderfully well as did the series of Puts with a higher striking price we were looking at on the closing on Wednesday.
Now here is what really happened. The stock closed Thursday at $427.44, opened at $425.21, jumped back up to $427.50 which was $.06 higher than the previous day's close and then tanked after that in the first nine mintes of trading.
In these nine minutes the Puts exploded in price. Anyone buying a Put contract at the 931.00 a.m.-932.00 a.m. time period at $370.00 dollars per contract would of had an exit point if they wanted at the $1,950.00 ptice point ten minutes later! Carvana regularly produces unexpected price swings. If it happens on a Friday it can become a really dangerous game.

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