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Trumph Picks A Friday To Change The Rules.

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...

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.

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