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Ford Kind Of Threw A Curve Ball With The Release Of Their Quarterly Earning's Report

First here is how the stock traded on the week. It's not very often you see a chart that looks like this after a company comes out with a quarterly earning's report. One would expect that if a stock goes up on an earning's report it will usually stay up. How good was it's earning's report? Yet sales were down 8%. All the while something else had happened. A few days prior Ford made this remark. Details of what this all meant were somewhat vague. Is Ford going to start transitioning itself out of the automotive industry? During World War Two Ford started building airplanes called the B-24 Liberator after first building the "River Run Bomber Plant". When Ford starts to talk about building something new the entire world listens. Isn't it true that the stock Caterpillar has also hinted of following a new path diversification? Here is what I am talking about. This "Ford Energy" notion came out only days before their earning release news. Was ...

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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