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Ford Call Options And A Quarterly Earnings Report

Let's start with a comment made by a Ford executive on the release of their quarterly earning report. There will be a "sunsetting of certain vehicles as we refresh our portfolio". What an elegant way saying they are surviving the changing times. Earnings for the June quarter are $.42 cents per share up from $.37 cents on the quarter a year earlier. Yesterday around 11:00 a.m. would have been a good time to catch a ride on this week's Call options. Let's watch how the markets will react to this news on the opening. Let's look at this week's Call options expiring on Friday (today is a Wednesday) and the January 15 Calls for 2027. That buys you about six months of time. First this week's Call options. They closed yesterday at $.46. Now the January 2027 Calls with a $15.00 striking price. Let's what happens on the opening. Will option traders be able to take their money and run? ... Take your money and run or wait? To be continued.
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Ford Puts - sometimes they will surprise!

Back to an old friend. This blog is about why trading stock options on the stock "Ford Motors" can suprise. It's also about trading options I call "penny like options". In this instance I am trading options priced at twelve cents. For first time readers that really means $12.00. Now, a one day and five day chart on Ford. Can you see how volatile the stock is as of late?
Now the five day.
Now a look at it's trading in the morning today up until 11:30 a.m..
Now here is my trading experience on the day.
20 contracts in at 10:05 a.m. at $12.00 each and out at 10:38 a.m. for $18.00 each. That's six dollars profit a contract. It all happened very quickly. Are you able to look at the chart above and see how the chart dipped during that period of time? If you don't play options and want to don't start by making trades like this. Well then again some traders only only make trades like this. It's not uncommon to see a $300.00 trade quicky go to $3,000. It's Ford. Times are changing and Ford feels it most. This leads to yet another point. Being a trader is not everyones cup of tea. Ford options are just something that most people would not want to be thinking about. Pity. ***** Yet another example. This time on a Thursday with one hour and eight minutes to go in the trading session. Take a minute and try to figure out what is happening.
Ford is up .12 cents on the day. Think of what would happen if it ever gave up this gain by the end of the day or on tomorrow's opening. Welcome to trading Ford options. *** Here they are seven minutes into the Friday morning trading session. Yes there was a profit to be made.

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