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Showing posts with label F. Show all posts
Showing posts with label F. Show all posts

Tuesday, March 8, 2011

Is China rethinking their one-child policy?

Chinese authorities apparently have been reading Benjanomics and are thinking of taking my advice about their one-child policy. They are thinking of lifting it . Imagine what happens to AAPL when all those Chinese people start using iPhones and Ford when they are all driving Ford's to shuttle their 2 child families to and fro. Also, imagine what happens to DBA and other agriculture etfs when there are a billion more Chinese demanding food.

Maybe it's time to learn mandarin? Nee-how!

I can have a brother now!

Thursday, January 27, 2011

Take a ride in the Ford Fusion

Ford reports earnings tomorrow morning before the market opens. Expectations are high for Ford with analysts expecting results from Ford not seen since 2000.

I am long F 2012 $25 and  2013 $30 LEAPS because they are cheap ways of participating in any ford upside for the next two years and they costs about $100 vs almost $19/share.

Drive me to the land of bread and honey!

Update:

Ford reported their best annual profit since 2000. Ford's FY net income came in at $6.6 billion or $1.66/share. The fourth quarter income came in lower than anticipated, mainly due to higher commodity costs, one time refinancing charges, and increased advertising on new product launches. Also in 2010, Ford improved its balance sheet and paid down $14.5 billion in debt. Ford still has a substantial debt load at $19.1 billion, but reduced its debt service costs by $1 billion annually.  But the company still ended the year with more cash than debt, something it has not done since 2006.

Due to the earnings miss in the 4th quarter, F was pummeled by short-term speculators and momentum investors. Shares are down over 16% since the earnings announcement. This is a good time to average down on F. I purchased more $25 leaps, a $20 leap, and a 17.50 leap. Also, you might look at selling $15 leap puts to get Ford shares at even more attractive prices in the future!

Tuesday, January 25, 2011

Ford lotto tickets

Ford (F) is reporting earnings on friday. Option traders are bullish on Ford. Today, one trader bought 10,000 Feb 19 calls while simultaneously selling 10,000 feb 17 puts to finance it.

Perhaps look at buying the feb 21 calls at .04 as a lotto ticket. These were selling for .25 as of last week and could easily go up 300-400% on a sharp move in the stock.

Wednesday, January 19, 2011

Long Ford

The chinaman is buying up cars like its going out of style. They have begun to auction off licence plates via lottery to limit the amount of congestion and emissions. While this limits sales, they are still auctioning off 20 million of them. Why not buy some Ford to take advantage of this!

Perhaps finance it with the sale of some AAPL put options!

sell 1 apple Jan 12 255 put for $10.60

buy 5 F jan 12 25 calls for .70 and 5 Jan 13 25 calls for 1.82