Wednesday, September 4, 2013

Call Options Purchased for Ford

Today, a September $17.00 call option was purchased for $0.31. The expectation of the trade is that the options will get to $1.00 before expiration. The stock is currently trading at $16.93. The reasons for the purchase are below:

- Ford has just released outstanding monthly numbers for August. The link to its numbers are here.

- Analysts have been continuously and consistently bullish on the stock.

- A large green candle today off of support and moving averages

- Stochastics such as RSI and MACD show a strengthening bullish condition.

- Getting to $18.00 has a high probability of success.

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