Significant Thursday Options Trading: XMTR, KMX, LC
Carmax Inc. Options Trading: Carmax Inc. (KMX) experienced a significant options trading volume of 32,727 contracts, equating to about 3.3 million underlying shares, with notable activity in the $27.50 strike put option expiring on November 21, 2025.
LendingClub Corp Options Trading: LendingClub Corp (LC) saw an options trading volume of 13,760 contracts, representing approximately 1.4 million underlying shares, with high activity in the $15 strike put option expiring on November 21, 2025.
Comparison of Trading Volumes: The options trading volumes for both KMX and LC were substantial, with KMX's volume at 59.3% of its average daily trading and LC's at 58.7% of its average daily trading over the past month.
Additional Resources: For more information on various available expirations for XMTR, KMX, or LC options, users can visit StockOptionsChannel.com.
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- CEO Transition Impact: CarMax's announcement of replacing interim CEO David McCreight with Keith Barr resulted in a 12% drop in stock price during midday trading, reflecting strong investor dissatisfaction with the leadership change.
- Leadership Background: New CEO Barr, coming from the hotel industry, is described by CarMax as a 'proven leader' capable of driving transformational growth and operational excellence; however, his non-automotive background may raise concerns among investors.
- Sales Decline Challenge: With three consecutive years of declining sales, the board seems to believe a transformation is necessary to improve the company's image, yet investors are worried this may signal a poor self-image and could affect future market confidence.
- Market Expectations: Despite CarMax's market capitalization of $5.9 billion and a price-to-earnings ratio below 13, analysts predict only a 7% growth rate over the next five years, indicating a lack of optimism regarding the company's recovery prospects.
- New CEO Appointment: CarMax has named Keith Barr as its new CEO, effective March 16, tasked with leading the company through its turnaround plan amid declining demand.
- Declining Market Demand: The company struggles to resell cars purchased at higher prices as inflation makes consumers more cash-conscious, prompting layoffs and other initiatives to mitigate lower demand and margin pressures.
- Leadership Changes: Former CEO Bill Nash stepped down in November, and CarMax is undergoing a broader leadership shake-up, with interim CEO David McCreight emphasizing the need for change within the organization.
- Industry Context Challenges: With consumers holding onto their older cars longer, CarMax must adapt its business model to align with this trend, ensuring sustainable growth in a shifting market landscape.
- New CEO Appointment: CarMax announced that Keith Barr will become president and CEO effective March 16, 2026, bringing over 25 years of executive leadership experience, including his recent role as CEO of InterContinental Hotels Group, which is expected to introduce fresh strategic insights into the company.
- Interim Leadership Transition: Current interim president and CEO David McCreight will return to his role as an independent board member, indicating the company's focus on stability and effective management during this transitional period.
- Board Structure Changes: Tom Folliard will remain interim executive chair until the annual meeting in June 2026, after which he is expected to resume his role as non-executive chair, ensuring continuity in corporate governance during this leadership transition.
- Market Reaction Monitoring: CarMax faces market challenges, including a downgrade to a “Sell” rating, reflecting concerns over its valuation, and Barr's appointment may influence investor confidence and drive future strategic adjustments.
- Industry Benchmark Recognition: CarMax has been named one of America's Most Iconic Companies by TIME Magazine, highlighting its leadership in the automotive retail sector and further solidifying its position as the nation's largest used car retailer.
- Customer Experience Innovation: By introducing a 'no-haggle' pricing model, CarMax has transformed the car buying experience, enhancing customer satisfaction and brand loyalty, which has driven the company's sustained growth over the past three decades.
- Market Influence: The selection was based on an independent survey of over 10,000 U.S. consumers, emphasizing CarMax's outstanding performance in brand recognition, cultural influence, and emotional connection, thereby enhancing its market image.
- Commitment to Continuous Development: With 255 stores and over 28,000 associates, CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 21 consecutive years, demonstrating its ongoing commitment to employee satisfaction and corporate culture.
- Share Acquisition: BML Capital Management disclosed a new position in CarMax by acquiring 155,000 shares valued at approximately $5.99 million during Q4, indicating confidence in the company despite a 46.84% decline in its stock price over the past year.
- Portfolio Concentration: This acquisition elevates CarMax to a 5.18% allocation in BML's portfolio, highlighting a strategic choice to invest in a cash-generative retailer amidst a focus on early-stage biotech investments, suggesting a belief in market opportunities.
- Financial Performance Pressure: CarMax's Q3 results revealed an 8% year-over-year decline in retail used unit sales and a 9% drop in comparable sales, with earnings per share falling from $0.81 to $0.43, indicating significant market challenges.
- Profitability and Savings Goals: Despite softer volumes, CarMax generated $590 million in gross profit and aims for at least $150 million in SG&A savings by fiscal 2027 while continuing aggressive stock buybacks, demonstrating a commitment to maintaining profitability in challenging times.









