Not as much of a yolo but very limited downside with this one. Sold about $400,000 in puts before earnings. If I get assigned after earnings I will double my position. I think carmax should be around $60. 12 PE and dogshit CEO just got canned. I believe it is only up from here.
Join WSB Discord
Tagged in DD, where is the DD regard
Changed to YOLO
Should have kept as DD for doubling down
Or the Double Dip
He’s got double downs
I"m pretty sure your expiration has to be after the 12/19 for it to work
Thinking this company will turn around instantly because of a simple CEO firing is max regardation. This isn’t some SaaS turn around story.
The main layoffs are related to dismantling its centralized call centers in favor of decentralized e offices within the stores itself. While this solves big customer experience pains, this doesn’t make them a winning business.
The company is still trapped in legacy software they’ve been trying to replace for almost a decade. This makes them slow to adapt and test consumer trends that allow rivals like carvana to run circles around them digitally.
The company has no clear strategy. Are they led by store sales, are they digital leaders to compete online, do their call centers drive sales? Who the fuck knows. Bill Nash certainty had no clue so he picked all 3 and made CarMax extremely average at each.
Imagine your wife, your ex-wife, and your future ex-wife are all at the same bar and you decide, “Yeah, I can handle all three.” You can’t. You strike out, Uber home alone, and end the night with diamond hands and zero action. That’s CarMax right now. And that’s about to be you with this shit purchase.
you know you can say retard now right? you don't need to say regard like some retarded ape.
man is losing his house
The inverse WSB sentiment money printer is the most consistent money printer in existence so I appreciate this
don't forget OP, it can always get worse.
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trust me bro
Can also get better
Not in my experience
good luck 🤞
That is why we have P/E ;)
currently trading at about 41. you say it "should be around 60"?? what makes you believe it "should be" at 60? is it because that would put the P/E at around 20?
It is oversold. New management is laying off employees and actively showing signs of a turn around for this company. CEO was canned December 1. I think this is the turning point and you will see steady growth in carmax over the next 6 months under new (currently temporary) management.
Ah yes, layoffs: the universal sign a shit company is turning things around…
For tesla bad earning report was a sign for buying the tesla dip. I was stupid and bought puts.
I forgot two negative turn into a positive. Negative earning report + stocks crashing = all time high.
I forgot this valuable trading strategy only hedge funds use
fair. thanks,
I’m a car hauler, and I’ve also seen more cars purchased the past week or 2 at auctions than I’ve seen in months.
Did you see the amount of debt it’s currently carrying?
Yes. Non Recourse debt is $17.1billion of total debt.
U played puts?
OP sold puts. Betting that KMX wont dip below $40 this week
did you blow on the dice for good luck?
Buddy please no lmao just play Carvana
checks my username
nah - it's going down. I took the opposite side of this trade.
Thanks for shopping my puts. Theta before earnings is going to destroy you.
Implied move priced in to the puts or calls is a max 11% move. Historically though KMX has had a 20% move the day after earnings. So hold on to your panties, this could be a rough ride either way!
Take the $210 win asap
The more negative sentiment on this post the more I want to close this position and…. Buy shares for earnings. Because WSB has always been wrong.
I know of three different people that bought defective cars from Carmax. That company deserves to go bankrupt
I wish you luck.
Bro also how long you going to hold that shit. It looks like your hammering money daily.
If I have 60-70% of the premium I will probably close out early
Good luck. May the stock force be with you
Not as long as xyz. Depending on price before earnings I may buy back these pre earnings.
Good luck I really hope you win. I hate seeing billionaires making more money. I wish you win bro. Seriously. I wish you were a little more careful. Losing like 33% of prof on options is pretty damn dangerous
Carmax for $30 was a steal
Time to cash out, boy!!!
Take your 210 profit
Not a terrible move. Best of luck regard
Lol what a schmuck
I was thinking down
What would Jim Cramer say?
He would say -
Carmax is Failing and soon to be BANKRUPT.
Well having a plan is nice, but this entire industry has been hurting bad. Good CEO or bad CEO CarMax is in the volume car sales business. What is the catalyst that will make them start selling more cars? Do you foresee people falling into bags of money? Will CarMAX get purchased? form a new partnership that will enable them to gain monthly profits from rentals? Just things to consider if you are trying to play this long term.
“I like it a lot”
Good move retard
Damn sorry bro it got knifed
Just put my fries in the bag if you’re gonna follow pre market
Haha congrats on the win
Surprise surprise
Some fries
LMAO
?????
lol
????
In the bag. Once again. Thank you guys. You are the best inverse I could ever ask for.
Also make sure you notice this was a $40 PUT sale. Not shares. Expiring Friday. 😎
Thanks for playing!
you got saved bro? you should be up nicely now right
The puts always expire worthless
Need to see how much you came out with post it!! LFG nice one
The put will expire worthless as usual 😭
Xzskx mi coma
msksqkxj
Well played
After taking assignment OP will be on CarMax board
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Since when can you sell naked puts on Robinhood? You’re telling me I can sell puts without using cash balance? Sign me up. Let me know how.