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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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"Ford Motor Company" Blogs are Always the Easiest to Understand

PART ONE. It's a company that makes cars and trucks and the stock currently is at around $14.00 per share. Sell more vehicles on a monthly basis and the price of the stock will go up. That's pretty simple. Now read this latest news.
So was that all good news or bad news or a combination of both? Sales were down annually over 7%. Remember also how many of the previous news releases talked about a high number of trucks sitting in parking lots waiting for a few final parts before they can be shipped out. Here now is a look at the 14 series of Calls which will expire in five trading days.
They are trading at 20 dollars a contract so the break even number at the end of the week would have to be around $14.20 per share. PART TWO. I played the same series of Calls last week, buying them at 9:42 a.m. last Monday morning. Here are the two fills. It's about the same price now as it was last last week at the same time.
Now to answer the question of how I did. I was offside big time on Monday, Tuesday and Wednesday but Ford popped Thursday morning and I got out ok.
Here is its five day chart. Imagine buying in on last Wednesday afternoon instead of on Monday morning like I did and getting out when it popped the next day!
Part Three. Here now is how the same series of the fourteen series of Calls closed out last Friday Dec 2nd. They were worth nothing because the stock closed under $14.00 a share. Can you see how highly leveraged these options can be? Part Four. Can you play options on Ford and continually make money? No. The stock wanders. They are however interesting to play on news releases and around earning seasons.

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