AutoNation May Fall Further, Options Show
Stock quotes in this article:
AN
By Chris McKhann, an analyst at OptionMonster.
AutoNation(AN Quote) has fallen 13% today, and one trader is using options to take a further bearish position. Shares of the national car dealer were above $14 yesterday but are at about $11.95 after UBS downgraded the company today from "neutral" to "sell." AutoNation has been in a steady uptrend since hitting a low of $3.97 last fall, but that $14 level has been a resistance since last June. The options trade was all the way out in October, where 10,000 of the Oct. 15 calls were sold for $1.70 and 10,000 of the Oct. 10 puts were purchased for $1.80, according to OptionMonster's tracking systems. The net debit is just $0.10, which is the risk if the stock finishes between $10 and $15. Above $15, the position has unlimited risk, and below $10, it can make highly leveraged gains. This is clearly a bet that AN cannot hold this level and will be at least another 20% lower from here over the next seven months. The writer has no holdings in the securities mentioned.- Loading Comments...
- Loading Comments...
Recent Comments
Featured Photo Galleries
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,431.60 | 1,114.48 | 2,235.21 | 36.55 |
Oil *
73.15
|
|
UP
102.71
|
UP
12.01
|
UP
23.52
|
UP
1.09
|
10 Yr
3.66%
SPDR Gold
107.10
|
|
+0.99%
|
+1.09%
|
+1.06%
|
+3.07%
|
Data delayed 20 minutes |














