[Buying Puts on Carmax (KMX)/Buying to Open Jan 45 Puts (KMXMI)/Day Order/Limit $4.60]
Dear Member:
Carmax (KMX) threw a shooting star candle yesterday and is down today. It has a gap to fill on the way down so I like the Jan 45 Puts (KMXMI) on a day order at a limit of $4.60. I would exit the play if the stock broke above $43.10. The delta on these puts is about -.58.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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