What If? Stellantis

-
What if? One year out options can be amazing trading vehicles. Look at this one year chart.
If you watch YouTube videos like "Car Edge" you will see statistics showing that Stellantis dealerships are sitting on two door Jeep Wranglers vehicles for about 230 days before they sell. Other product lines like the Crysler Pacifica can sit for like 264 days or the Dodge Charger, the slowest-selling new vehicle in North America at 385 days. Yet that's only part of there business. In Europe for example it sold 1.37 million vehicles in the first half of 2026, up 3.8% from H1 2025. That said Chinese brands' European sales more than doubled their market share to 8.9% in H1 2026. Stellantis also now owns about 21% of Leapfrog and is now selling these Chinese electric vehicles in South America through it's dealer network. My point is that anything can happen with Stellantis over the next year. It has a Forward P/E ratio of about 5.5X. Now this news on the day. Management at times can kind seem to be "out-to-lunch".
Now this.
Might now be a good time to look at it's one year out Call options? I note that ChatGPT says that it is unlikely Stellantis will have to issue any new shares in the next year to survive. That's a good thing. Here is one series of Calls almost one year out.
There seems to be next to no interest in them. That doesn't worry me. One more thought. Any kind of a rebound will cause these options to shoot up. This could be a good three to six month play. The next time you see a red oxide Charger Daytona Scat Pack with 670 hp pull up next to you at a stoplight think about what I wrote in this blog. Maybe, just maybe Stellantis does have staying power.

Comments

Post a Comment

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

-
Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

-
Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

-
Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more