CAT Puts

If we look at the stock Carvana from a five or ten day persective that's not really enough time to get a full understanding of why the stock is trading the way it is. First a look at it's one month chart. Now a five day chart. On average it's up about five dollars a day. It kind of makes you wonder when you can start to play the downside. Now Netflix, a five day chart. It's the same thing, it's up over $75.00 in five trading sessions. We can't forget Tesla, it's up fifty dollars in five days. Boeing also got sucked into the upward draft as it had a few bits of good news like a government contract for new planes. This stock has also jumped in price. Had any option player tried to fight any of these stocks using Puts as a trading vehicle in the last five days they would have quite simply gotten smashed. Is there any reasons to now think its time to play the next three days of market trading looking for some downside action? Wednesdays are afterall days of...

It helps when the markets rally on a Monday but that's a secondary issue. This blog is about stocks in the seventy dollar price range with options on them staggered in thirty day intervals. Is trading in options which trade in only in thirty day intervals better than options on stocks in the same price range that expire every Friday? My experience is that options on stocks that trade every thirty days tend to attract less interest which in turn means that they are less susceptible to "market-maker" manipulations. Yet this isn't really a point I want to debate. Now this, a look at the seventy series of Calls on "Carmax" at the end of the trading session today. Bid 5:70 ask 5:90. Only two options traded on the day. Let's now look at it's five day chart. So it jumped a touch but nothing to crazy. Now this, I did a blog last Friday, my previous blog where I showed what the same options were trading at on that day. Here is the printout I want to show. ...

So used car prices might start to cost more money if and when tariffs come into play. That's the latest thesis now under debate. Look at the huge declines in the stock prices of these three used auto selling companies in the last month or so. Totally shocking. Yet here is the funny thing. All three of these stocks have recently sold off. One reason for this is because car buyers can't afford the payments on the new cars they recently purchased at the low financing dealer rates. These vehicles are being dumped. If new cars are suddenly going to cost more because of tariffs then wouldn't these used car organizations fair better in selling the inventory they just bought at low prices? The cycles that the used car industry goes through are often frought with danger. Now this. A five day chart of "Carmax". Now this, a look at the one day Call options (that expire tomorrow) on "Carmax". What strikes you about them? What strikes me is that the volume of trad...

So here are nine examples of what the heading is alluding too. Bad times for the most part to be entering into option positions. 1) Tesla. (these Calls ended up closing the week at $21.15) 2) 3) (These 815 Calls closed the week at $27.74) 4) 5) 6) 7) 9) 8) Now the closing reading on these Calls at the end of the trading session. $6.20 is down from $8.03 on Tesla and on First Solar the Calls are $3.10 down from $3.35. Here is what the markets did on the day. So let's continue on. Now Elli Lilly and Caterpillar. Elli Lilly went from $13.40 to $15.65 and Caterpillar went from $3.95 to bid $3.95 and $4.35. They ended up closing at $18.30). Elli Lilly showing strenght in the second half of the day could be a precursor to something good happening. Now Biogen. It went from $2.50. down to $1.45. Boeing Calls went from $2.88 to $3.70. In Biogen there were no further option trades on the day with the bid and ask going up towards the closing bell. Walmart couldn't do anythin...