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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 Power Of "One-Month-Out-Options" For Short Term Gains.

It helps when the markets rally on a Monday but that's a secondary issue.
This blog is about stocks in the seventy dollar price range with options on them staggered in thirty day intervals. Is trading in options which trade in only in thirty day intervals better than options on stocks in the same price range that expire every Friday? My experience is that options on stocks that trade every thirty days tend to attract less interest which in turn means that they are less susceptible to "market-maker" manipulations. Yet this isn't really a point I want to debate. Now this, a look at the seventy series of Calls on "Carmax" at the end of the trading session today.
Bid 5:70 ask 5:90. Only two options traded on the day. Let's now look at it's five day chart.
So it jumped a touch but nothing to crazy. Now this, I did a blog last Friday, my previous blog where I showed what the same options were trading at on that day. Here is the printout I want to show.
A 10:39 a.m. readout on Friday morning showing only three option contracts traded with a last trading price traded of $4.07. Is there a lesson here to be gained? Yes, thinly traded "one-month-out" options can be successfully traded. What appreciations are there to be gained? Well there is less market maker manipulations. When you put in a closing sell ticket for only one, two or three contract and if the trend of the stock is upwards you will get a fill without going through the game of watching option makers wiggle the "bid-and-ask" in their favour. One month out options, played correctly are also less stressful to hold because the premiums built into an options price for it's time value will not disappear as quickly as the premiums built into one week out options. That's just the way I see it.

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