I need to keep it short and sweet today because I’m driving my husband, Scott, to the airport so he can fly down to Charleston, S.C., to … pick up a car.
Scott is a total gearhead and knows his shitake (as Option Pit Director of Education Andrew Giovinazzi might would say).
But it’s true — he bought our last car for 24% off the sticker price.
His secret is to buy the current year model right before the new year models come out.
The dealers want to get rid of the old inventory and are willing to negotiate more than usual.
Also, a #protip from Scott, act like you do not care and will walk away at any moment.
And never, ever say, “I like this.”
That’s why Scott doesn’t like me to go with him. I made the mistake once of saying, “Oh, I love this color!”
Now, if you’ve been in the market to buy a car recently, you have definitely noticed the shortage issue.
There are no cars to buy!
Every time Scott finds a car online he wants to look at, it’s sold by the time he gets to the dealership!
He actually talked to a salesman on the phone about a particular car on the lot, and when he got there, the guy told him, “Oh, it just sold.”
There is such a shortage, he is selling our current car for 78% of what he paid for it two years ago.
Not too shabby.
And speaking of cars and trades …
Continue here to make a trade in General Motors (Ticker: GM) …
My Trade in GM
Look what I am seeing on the GM stock chart:
It’s a hanging man candlestick, meaning this could be the end of the recent uptrend that began on May 13 and has moved GM up 18%.
Remember, the hanging man signifies a change in sentiment at the top of an uptrend. It shows how the bulls may be tiring and the bears have the opportunity to take over.
If GM opens lower on Monday, I will buy the June 18 63-strike puts and pay up to $1.50.
As you can see, the further out-of-the-money puts do not offer much as a sale to bring my cost down.
Since I am only spending $1.50, I will buy these puts outright.
I will begin to take profits at the $2.50 level and higher. On the downside, or if the stock trades higher, I will take my losses at $1.
Gotta run! If you see a car you like, snag it before someone else does!
Thanks for Reading … See You Next Tuesday!