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Ford Motor Company Options

Ford was on a role. On a role that is until their reputation for poor quality control came back to haunt them. In the recent past it was basking in the new news it was entering into a new tranformational era. A new division, "Ford Energy" is going to start making lithium iron phosphate battery cells. Telsa and G.M are also on a similiar path. The stock surged on this news. This week a different reality set in. Yet another massive recall. This time 770,000 vehicles were recalled with one fix available by August and a second fix not available until April of 2027. Now look at it's three month chart. On this news option traders have jumped into the Puts. Look at the open interest in these two series of December options ... Now it's five day chart. Money was made on playing the downside in a 24 hour period of time after the recall news came out. This news came out June 30th and the biggest drop happened into the next morning's trading session. You really have to wat...
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The Future of Ford. Short Term It Is Not Good

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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