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Option Trading Strategies To Avoid.

Ford Call Options on A Monday morning that expire at the end of the week. Had you bought the Calls on it on Friday morning that expired that afternoon you would have made out very well. Here is what Ai says. Now this, the 12 series of Calls options on a Monday morning that expire at the end of the week. They took a slight dip. Here is it's Monday morning chart. Here is a look at the same options twenty one minutes later. Traders have bought in on this dip. Is this trading strategy, buying this weeks Calls on a Monday morning on a stock hitting a fifty-two week high a prudent thing to be doing? Is this a question of coming to the party to late? This is the concern. Why not purchase instead "in-the-money-Calls" with one month's trading life in them to go? That would be a safer strategy. Their next earnings report comes out on October 27th. Here is how other stocks are trading. It's a mixed bag. So now it becomes a waiting game and this is why I called this ...
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LiveWire

My last blog was about Harley Davidson and what I didn't bring into the conservation was their spin off business which is building electric motorcycles. To be honest these bikes are not getting rave reviews. Two complaints are their crippling range and the possible issue of them being more dangerous to drive because they are so quiet. There is also competion from abroad. Last quarter they built only 63 of them and that experience is part of the company expecting to incur a loss of over $115 million this year. If you do the math each bike built cost them over $200,00.00. A $115 million dollar loss vs a profit of $1.3 billion for Harley Davidison. That loss makes a small dent in the overall big picture and in the process of getting going they used other people's money. Nursing this project to life from a business point of view has merit. Covid didn't help anything. LiveWire has to go slow until the product itself evolves to a level they feel proud to put their name on. Investors know this companies pedigree. See it's chart and read this.
Now go back to the previous blog on Harley Davidson. Put this puzzle together anyway you want. Forcasting of 750 units on the low end is still a three fold increase in production levels from where they are at now. Could they turn to be profitable in the next 1,000 days? Maybe. Yes there are options on LiveWire. Here are the Oct20th/2024 Calls with a striking price of 7.5 and 10 dollars. That's as far out as you can go and no one is trying to play them. The bids and asks are to far apart.
Keep in mind the company will continue to lose money all year. What a muddle. There are easlier games to play.

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