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The Trap On Costco With One Day To Go "Call" Options

Let's start by saying it's 3:00 p.m. on Thursday and I am going to talk about the big sell off that Costco experienced this morning. The news that seemed to take some time to be disceminated. Yet it turned out to be "regular-stuff kind" of news like last month's food sales. Everyone listening to this news has an opinion of whatever the outcome happens to be. For most people this news is only background noise. Costco releases news like this often. Sometimes shareholder get all stressed out hearing any news of any kind and just bail. In the market there are always sharks waiting to bite on the lower prices. In the early few minutes of trading the average retail trader had no knowledge of what this news was all about. Opening markets started falling quickly. That sometimes happens. Does an instinct kick and say let's jump back in looking for a rebound. One problem is that if you jump in two early the value of your intial investment could drop in half in only 15...
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The Future of Ford. Short Term It Is Not Good

There is news! The stock is jumping.
Look at todays volume of trading as of 2:00 p.m. The average daily volume is around 59 million shares. What a vote of confidence!
Anyone holding Ford Call options has been rewarded.
Is it clear sailing going forward? It should be for the next few months as Ford revels in this glory. But wait, is this all talk and no action. How long will it take to build these new facitities and what will the E.V. marketplace look like three or four years do the road? This good news report may turn sour quickly as Ford is losing money on on each electric vehicle they sell. That's the problem built into this situation. In the short and mid term, things do not look good. Stay away or buy Puts.

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