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Carvana - Short Term Options.

It's not an average day trading in the markets. Trumph creates suprises. Look at this printout. It's difficult to read however only Carvanna is down. It's down over $10.00. All of these companies trade in the same space with some slight difference as to what their business models are all about. Now look at Carvana's chart. . Now this. This series of Call options are down 52% on the opening. It's Thursday morning and these contracts expire tomorrow. Why would you even want to trade something this risky? One reason is that this is a "crooked-stock" that some traders follow. The company buys and sells cars and switchs numbers around to different controlling interests. With this stock anything can happen. It should come as no suprise that there very few option trader's willing to trade them. It's now 11:23 a.m. and nothing has changed much. These options are down 53% on the day. Now an "end-of-day" five day printout. Here is how the DJIA ...
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Young People And Options

Let me spill out some information. Next-Generation Investors Are Different. An organization called "Finra" published this information. In a 2021 survey the Finra Investor Education Foundation found that 36% of respondents aged 18 t0 34 said they have traded options. That compares with 21% of respondents ages 35 to 54 and just 8% of respondents age 55 and older. Then there are crypto investors. According to something called a Pew Research survey based on Feb 2024 data, 42% of men aged 18-29 have invested in, traded, or used cryptocurrency compared with 17% of women in the same age range. Interestly, just 17% of all adults say they have invested in, traded, or used a cryptocurrency, according to the same 2024 survey. When it comes to buying on margin,in 2021, just under of a quarter, or 23%, of investors ages 18 to 34 said they have made purcheses on margin, compared with 12% of respondents aged 34 to 54 and 3% of respondents age 55 and older. Opening accounts is now easier and there's an explosion of new sources of information and social networks that can encourage risky behaviors. Let's not forget the recent frenzy of meme stock trading. Robinhood knows all this and works in this space.
Look at how it's stock has traded in the last one year.
My point is that young people are experimenting with option trading and the trend is only going to continue. Pick twenty or thirty stocks and just watch them for a few months. Write down turning points you see happening and check out how much at that point in time a Call or a Put costs on any series you pick. Then check back later to see if you were correct in making such a call. Option trading, unfortunately is very much a self taught process.

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