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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 and Nio Power Up Again

Look at the opening on Ford. What a stock to be focusing on over the last week. Call optons that consistently double in price in a matter of one or two days of trading. The party will not go on forever but what a ride.
This mornings upward move.
If you were trading Boeing or Caterpillar options you would be looking for two or three dollar swings. With stocks like Ford and Nio these recent swings are huge on a precentage basis. That is the power of playing options on stocks in this price range. In yesterdays blog I mentioned Nio. It had news.
Look at how the stock jumped again on the opening. That is two days in a row.
Is this not intended to be a blog about learning to trade like a pro. There is a high risk involved in trying so guess daily price swings on low priced stocks like this. In some ways what we are talking about is mispricings in the market. Barons is constantly talking about how Ford may be underpriced given this shift to going electric. This will be a multi year story. Option traders are known to chase what we can call the action and next week both of these stocks may be out-of-fashion. It will be interesting to watch how Ford closes out the week.

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