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A "Get Ready For Monday Morning" Blog . "Avis-Budget" Symbol "CAR"

There is always news. War news. News on gas prices and news that Costco is trying to sue the government over tariff monies. Two weeks ago I mentioned a situation with Super Micro Computer. That stock really got beat up when a company officer was arrested. Now that news is slowly being shrugged off. Now this, the car leasing company Avis has a story. To better help explain what is happening let's look at it's five day chart. . What's going on? Articles are appearing saying that stocks in this sector are being boosted by TSA Airport chaos. Yet there has to more news than that. Look at it's latest five day chart. Now here is how the 170 series of Calls last Friday closed out the day. On that day the stock closed up $20.35 dollars! Other stocks in the same sector remained calm. The stock is now in nose bleeding territories. Obviously options on this stock will be hot potatoes this week. Here are two "near-to-the-money" series of this weeks options to look at...
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Harley-Davidson

First, I am not a big fan of playing options on stocks in the thirty and forty dollar range. It's not like speculating in Boeing or Caterpillar Calls and Puts with these stocks swinging up or down two or three dollars nearly everyday. Harley Davidson is a thirty five dollar stock. Look at how it is trading so poorly on the good earnings news back at the end of April.
Now here is some of this news.
All the good news was wiped out by the forecasting of a bit of a slowdown in the second half of this year. Investors who bought in early this year when the stock was trading over fifteen dollars higher who correctly anticipcated this surge of earnings must now feel so frustrated. Where are their rewards? Now look below and see where the January 37 Calls are trading at. If the stock gets above forty you would be in luck. That would buy you their next two earnings reports. By then management might see their business in a more favourable light. Yet the chart looks ugly and there doesn't seem to be a support level.* With most option positions "time value" works against you. When you purchase eight months of time and your reasonings for buying in turn out to be correct the time value can become your friend. It is however still a scary position to be considering.

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