Market News

December 19, 2016  Mon 11:06 AM CT

CarMax has rallied sharply since the Presidential Election, and now traders want protection with results due tomorrow morning.

OptionMonster's market scanner shows that 2,000 January 62.50 puts were purchased for $3.00 to $3.05. Volume surpassed open interest of 453 contracts, an indication new money was put to work. 

Puts fix the price where a stock can be sold, so they make money to the downside. (See our Education section.) Investors use them to hedge long positions or to speculate on a drop. 

KMX rose 0.37 percent to $62.38 in afternoon trading and is up 11 percent in the last month. It's run along with other cyclical and transportation-related names as investors look for quicker growth under the incoming Trump Administration.

Overall option volume was about average in KMX.

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