CarMax (KMX) Offering Possible 7.53% Return Over the Next 24 Calendar Days

CarMax's most recent trend suggests a bearish bias. One trading opportunity on CarMax is a Bear Call Spread using a strike $62.50 short call and a strike $67.50 long call offers a potential 7.53% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $62.50 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock rose above the $67.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for CarMax is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for CarMax is bearish.

The RSI indicator is at 25.53 level which suggests that the stock is neither overbought nor oversold at this time.

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Edited Transcript of KMX earnings conference call or presentation 21-Dec-18 2:00pm GMT
Sat, 22 Dec 2018 06:26:18 +0000
Q3 2019 Carmax Inc Earnings Call

Top Gainers: CarMax, Chromadex, Intevac Rally Despite Wobble on Wall Street
Fri, 21 Dec 2018 22:20:00 +0000 – CarMax, Chromadex and Intevac rallied into the close Friday despite a sea of red across Wall Street.

Dow posts worst weekly performance in a decade, Nasdaq enters bear market
Fri, 21 Dec 2018 21:00:35 +0000
U.S. stocks jumped on Friday following comments from a key Federal Reserve official suggesting that the central bank is open to shifting its views on rate hikes for next year.

CarMax Inc (KMX) Q3 2019 Earnings Conference Call Transcript
Fri, 21 Dec 2018 19:40:56 +0000
KMX Earnings call for the period ending November 30, 2018.

KMX Stock: 8 Things to Know About CarMax Earnings
Fri, 21 Dec 2018 19:10:12 +0000
CarMax earnings (NYSE:KMX) surged more than 20% compared to the year-ago quarter, sending KMX stock up close to 5% on Friday. CarMax also said that its used unit sales in comparable stores took a hit of 1.2% year-over-year. Plus, the company’s total used unit sales gained 2.3% compared to the year-ago quarter.

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