I am long AN $38.00 puts that expire ten days after the next earnings and revenue release. I expect the numbers to be poor, and I expect that the stock will sell off even more after this release. However, I got a message asking if I thought the market will go lower from here. Likely, not until the release. But, I will take if if it does go lower.
The consumer is slowing. Lending is cramping up. Used car prices are falling. Auto Nation has no chance of hitting their earnings expectation. With a $40.00 price, buying a $38.00 put with an expiration just past the earnings release, August 8th release, August 18th expiry date, the $38.00 put is bid at $1.35. That is a very easy long put position.