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Showing posts from September, 2021

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G.M. And Ford Are Buddies

Earning reports on G.M. came out. Ford Calls were intoxicated by this news. Stellantis moved up a touch but not so much. Of the "big-three" they seem to have the most issues to deal with. So basically the bet was on how G.M. was going to do this quarter and anyone watching and investing in Call options got a double on the morning action. Volumes in both of these series of options was relatively light. Let's pause for a moment and reflect on this situation. Options on automobile stocks have a repetitive pattern of trading like this and opportunies to capitalize on this event happen four times a year. Caterpillar and Deere are two other companies that react strongly to earning reports however the tranparency or the internals of what is happening within their organizations are more difficult to get a read on. Then there is the different animal called Tesla which prides itself on chatter of what might come. Option traders following these names should mark all of these events...
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The Regulation Of Forward Looking Statements

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Did you read the fine print of my Sept. 27th blog about Zen Graphene Solutions? A newish company making claims to be able to crank up production to fill the demands of a new ingredent used in the production of Covid masks. Click around the internet and find out the number of employees they have. Not many. Their new partner is not a listed company. Why are they talking about an estimated capacity to coat the equivant of 800 million masks per month? That many, really? In a similiar sort of way, in my Sept. 16th blog I talked about Limestone Boats and their claims to be able to crank out 550 boats next year. A picture in that blog shows their first two boats being shipped out for motors and sea testing. Without a track record of making boats this year how can they justify such a number? Then there is Odd Burger. I talked about this stock on September 6th with plans to open 20 restaurants next year. How did they pick the number twenty? Why not ten? How do you plan for twenty when you curre...
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The Future of Ford. Short Term It Is Not Good

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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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