January 19th, 2011:
Ford Motor Co. (F)
June 2011 $17 put options
Current Price: $1.15
NIA’s President today purchased 250 Ford (F) June $17 put options at $1.15 for a total bet of $28,750 that Ford will decline in value. He believes Ford’s downward move today may be an indication that the stock has seen its top. There is a ton of hype out there about Ford’s turnaround story and he believes the best case scenario for Ford has already been priced into the stock. Ford is now trading at its highest level since 2001, despite the fact that Americans will soon need to spend all of their money on food and won’t have any money left to buy new cars. Although the prices of all U.S. stocks will rise if the Fed prints enough money, in the short-term NIA’s President believes Ford is overpriced and is due for a major dip.
Options trading is extremely risky and speculative. NIA’s President is not an investment advisor and NIA does not provide investment advice.
|
|
