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One Day Options On One Of The Most Difficult Stocks To Play Options On. Carvana

Carvana has a dubious reputation. Insider stock manipulation. That's old news. Who knows what it is now doing? Here is it's five day chart and here are how it's two day until expiring Call and Put options are positioned going into tomorrow's Thursday trading session. .... 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 o...
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Roku And It's 2nd Quarter Earning Report

Let's start with the time period of Thursday morning with an earning's report coming out after the closing bell. Look at how crazy expensive these three series of Call options are. They are the Roku "out-of-the-money" Call options that expire tomorrow. The volume in them is not all that crazy but if I owned the stock I would be tempted to sell the Calls against my position and hope they would expire worthless. Tomorrow is Friday August 2nd.
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Why pay so much? Why pay $4.05 for a Call with a striking price of "58" with one trading day to go in the contract? The stock would have to jump four dollars just to get your money back? Talk about stupid? Yet then again Netflix, a company also in a similiar space sometimes moves like ten dollars in one day. Here now is a look at what happened by showing tomorrow's five day chart.
Down $2.19 on the day to $53.14 with the DJIA down over 600 points.
Say goodbye to those Calls if you ever bought in. Now let's look at it's year-to-date chart.
Can you see how it dropped about $35.00 quickly on the release of it's first quarter's earnings? That's part of the reason why these Calls were so expensive. On good news it could have really popped. So what were it's second quarter earnings actually like?
It's still reporting losing money per share however their guidance is starting to look more promising. Having the markets drop over 600 points on the day (it was down even more than at one point during the day) really squashed any upside potential. The game never ends. Here now is how next weeks 53, 54 and 55 series of Calls are trading.
Pick you battle. How did things turn out four days later in a crummy market? Not good. Look at these same options. People however are now waking up to the fact that the quarterly earnings report was not all that bad. Trading options is never a walk in the park. There is still time for these Calls to suprise.
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