~ CarMax (KMX) Analysis + Option Trade Log 9/29/2016 (Bearish swing on bad Q2 earnings) ~steemCreated with Sketch.

in #money • 8 years ago (edited)


Last week Wednesday (Sept. 21st, 2016) Car Max [KMX] released 'bad' Q2 earnings.

I decided to purchase a few Oct. 21st 55.00 puts @ $2.54/contract on the same day.

Currently, KMX's price is trending in a bearish pattern, has broken through 1 level of support and now is at a lower level of support. See the chart below (The blue lines are support/resistance levels).

Today's candle (Sept. 29th, 2016) has a decently large upper wick and shows selling pressure on a daily chart (above). There is a possibility for KMX to bounce higher into the 10 EMA (red line) and then continue the trend of moving lower into a stronger level of support.

Depending on how KMX moves and the candle stick that forms tomorrow (Sept. 30th, 2016), I will either a) exit the trade or b) continue to hold the puts on KMX until there are 'sustained' signs of a bullish reversal. If KMX starts to show signs of a reversal before the expiration date of the put option (Oct. 21st) I will exit the trade. 

We shall see... 

Until next time,

- Ford Mogul

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8 years ago in #money by
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