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Ford Motor Company "Calls".

The one week chart tells the entire story. A thirty day chart adds more detail. Moves this large seldom happen over such compressed periods of time. Look at how these two series of Call options traded on Friday. Back on May 6th I did a blog called "Ford Motor Company Calls On The Week" and in that blog I showed this chart. Back then it was still the same story. Also of note is the fact that Ford is not doing particularly well in their quest to churn out more vehicles. I think this stock will now take a breather. Anyone playing thirty day options on Ford during this time period will be up like three or four times on their initial investment. Naysayers take note. Opportunities do happen. Traders are even finding value in 2028 Ford option Calls! Now Hertz. Might car rentals pick up in the next month as summer months approaches? Yes gas prices are up however summer is when many people take vacations and want to hit the road. Flying is now getting expensive. Renting a car is...

Harley-Davidson

First, I am not a big fan of playing options on stocks in the thirty and forty dollar range. It's not like speculating in Boeing or Caterpillar Calls and Puts with these stocks swinging up or down two or three dollars nearly everyday. Harley Davidson is a thirty five dollar stock. Look at how it is trading so poorly on the good earnings news back at the end of April.
Now here is some of this news.
All the good news was wiped out by the forecasting of a bit of a slowdown in the second half of this year. Investors who bought in early this year when the stock was trading over fifteen dollars higher who correctly anticipcated this surge of earnings must now feel so frustrated. Where are their rewards? Now look below and see where the January 37 Calls are trading at. If the stock gets above forty you would be in luck. That would buy you their next two earnings reports. By then management might see their business in a more favourable light. Yet the chart looks ugly and there doesn't seem to be a support level.* With most option positions "time value" works against you. When you purchase eight months of time and your reasonings for buying in turn out to be correct the time value can become your friend. It is however still a scary position to be considering.

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