Ford Call Options And A Quarterly Earnings Report

Let's start with a comment made by a Ford executive on the release of their quarterly earning report. There will be a "sunsetting of certain vehicles as we refresh our portfolio". What an elegant way saying they are surviving the changing times. Earnings for the June quarter are $.42 cents per share up from $.37 cents on the quarter a year earlier.

Yesterday around 11:00 a.m. would have been a good time to catch a ride on this week's Call options. Let's watch how the markets will react to this news on the opening. Let's look at this week's Call options expiring on Friday (today is a Wednesday) and the January 15 Calls for 2027. That buys you about six months of time. First this week's Call options. They closed yesterday at $.46.

Now the January 2027 Calls with a $15.00 striking price. They are a longer term play.

Let's what happens on the opening. Will option traders be able to take their money and run?

...

Take your money and run or wait?

The markets sold off in the afternoon and Ford lost some of it's gain.

The point is that options on Ford Calls are something to look at four times a year when they have earning report releases. Stellantis also jumped, but on poor earning reports. Here is it's one and five day charts. The D.J.I.A. had it's biggest one day drop in a year.

Long term options on Stellantis would be thinking outside the box. I wouldn't want to go there.