straddle on AN right before auto sales numbers released beginning of each month?

[cwerdna]

I've been looking at the chart of Autonation and it seems like the stock tends to either have a big move or a big trading range right around or after monthly auto sales are released.

US auto sales are always released at the beginning of each month. Sometimes it's the first day of the month but it's seems usually within 1-3 business days of the first day of the month. One can get an idea by looking at http://www.autoblog.com/category/by-the-numbers/. One can look up sales for most automakers by Googling for [automaker] reports sales [month] [year] e.g. Toyota reports sales june 2012.

Is there a possibly a play here based on price movement but not rising IV?

[Kim]

Interesting idea - not sure if the options are liquid enough.

[tjlocke99]

what about doing this instead with one of the major auto stocks like Ford, GM, etc?

I've been looking at the chart of Autonation and it seems like the stock tends to either have a big move or a big trading range right around or after monthly auto sales are released.

US auto sales are always released at the beginning of each month. Sometimes it's the first day of the month but it's seems usually within 1-3 business days of the first day of the month. One can get an idea by looking at http://www.autoblog....by-the-numbers/. One can look up sales for most automakers by Googling for [automaker] reports sales [month] [year] e.g. Toyota reports sales june 2012.

Is there a possibly a play here based on price movement but not rising IV?

R

[cwerdna]

what about doing this instead with one of the major auto stocks like Ford, GM, etc?

Well, F is a very low dollar stock, so it might not be easy/possible to make profits due to commissions. GM is a lower dollar stock than AN.

I haven't looked into detail as to how big the price moves are of GM around/after sales #s are announced. There are plenty of other auto companies and suppliers like NSANY, TM, HMC and suppliers like MGA, DNA and LEA (more at http://biz.yahoo.com/ic/333_cl_all.html), but I haven't looked carefully at whether their stocks exhibit the same behavior.

If you see that they do, please let us know.

Edited July 10, 2012 by cwerdna

[Kim]

test1

[Kim]

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[Kim]

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[Kim]

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[Marco]

test 5

just want to be part of whatever you are doing

[Kim]

test 5

just want to be part of whatever you are doing

Sorry about that.. just wanted to test that the emails are sent properly.