Monday, June 19, 2006

Buy KMX Car Max

Trade

Buy/write on KMX
buy stock, sell the July 35 call

sell the PGR Aug 27.5 call

KMX is up on earnings report. They are also a possible long term growth play, with a market cap of $3.5 billion, and 71 stores, that leaves a lot of room to grow. KMX is starting to gain some national brand recognition. Other types of stores have fallen to the chains, office supply, hardware, drug stores, so KMX has a shot at it.

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