F - Ford Motor Company - Page 377

i just have to keep saying, "Alan Mulally is a genius!" Brilliant

He really is,

i think he will stay on until they get investment grade back and start paying a dividend again. 

bought in way to high at 14.33 no choice now but to hold until the markets come back no point in selling for a loss ford is worth much more then whats its tradeing at now imo

Quote:

Originally Posted by Tasho 

 ford is worth much more then whats its tradeing at now imo

i agree!!!!

i think we can all agree on that.  but it's stupid to not follow the market as right now Ford isnt going anywhere but down.

Quote:

Originally Posted by Tasho 

bought in way to high at 14.33 no choice now but to hold until the markets come back no point in selling for a loss ford is worth much more then whats its tradeing at now imo

That is a tough way of playing things. I agree, but I think people have been saying that since $14/$15/$16, etc. Play smart, play with a stop-loss and play the direction the markets are going. Ford has been a real dog recently.

I`ve decided to hold what I have.I also would consider buying more if it would drop again.This is going to be a long term hold now for me.I`m getting some help from a close friend who does this for a living.Also going to start trying some shorting, some ETF`s and learning options trading.I am totally facinated with all of this,even more so after spending a few days watching someone who knows what they are doing.

I think most of you are getting it backwards:

There's a difference in what something is worth, and what someone is willing to pay for it....nobody wants to pay retail, even in trading stocks / options....

Just because the "book" value on Ford is higher doesn't mean everyone is buying at that price.

you tell them
 

Quote:

Originally Posted by OldFart 

I think most of you are getting it backwards:

 

There's a difference in what something is worth, and what someone is willing to pay for it....nobody wants to pay retail, even in trading stocks / options....

 

Just because the "book" value on Ford is higher doesn't mean everyone is buying at that price.

What someone is willing to pay determines its worth to me.Added more today when a low bid of 13.65 filled.Thats what I was willing to pay and thats what someone was willing to take.Worth every penny IMO

 

Quote:

Originally Posted by OldFart 

I think most of you are getting it backwards:

 

There's a difference in what something is worth, and what someone is willing to pay for it....nobody wants to pay retail, even in trading stocks / options....

 

Just because the "book" value on Ford is higher doesn't mean everyone is buying at that price.

...may I suggest, if you're long term , you should think about protecting your investment with an options collar?....

please elaborate...im intrigued

Quote:

Originally Posted by OldFart 

...may I suggest, if you're long term , you should think about protecting your investment with an options collar?....

Such as buying puts to hedge your long term trade. It will limit your downside, and slightly limit your upside depending on how you setup the trade, and how far out your options are.

The thing I've been watching on Ford has been the March lows.  While we obviously took them out a while ago, I watched the intra-day low on 3/15 of 13.75 which we hovered around on an intra-day basis and only closed below it once until today.  At these levels I would certainly buy protection as advised above as it can be quite a ride until support if Ford continues to trend down with the market.  Best of luck.

http://www.theflyonthewall.com/permalinks/entry.php/Fid1443012/F-Ford-ordered-to-pay-almost-B-in-dealer-suit-WSJ-says-

I don't really see any reason to be that heavily invested in ford right now. I too was watching for it to drop below 13.75. Now we'll see how much lower it can go before the dust settles.

Quote:

Originally Posted by richfarmer 

please elaborate...im intrigued

 

Here's a copy/paste.

"A collar is a spread strategy where you simultaneously purchase a protective put and write a covered call on stock you already own. If you hold a stock whose price has risen sharply, a collar can help you protect those gains against a future drop in price. Writing a covered call helps offset the price of buying the protective put, making it relatively inexpensive to protect your profit.

For example, say you bought 100 shares of NRQ stock at $20 three years ago, and its current market price is $35. If you purchase a 30 put, you'll have the right to sell those shares at $30 before expiration, locking in a $10 profit on each share, or a total of $1,000. In this scenario, the price of the put cost you $300, or $3 per share.

To complete the collar, imagine you also write a 40 call for $275 with the same expiration as the put. If the price of NRQ stock rises above $40, the call will likely be exercised and you will receive $4,000 in compensation for the shares you must sell. Since the initial investment you made to purchase the stock cost you $2,000, you've made a $2,000 profit by using a collar.

Also, note that since you received $275 when you sold the call, your net cost for the collar strategy was only $25, less than one tenth of the cost of the put alone."

I have a pending buy order for 1000 shares at $10.50.  Mark my words, it'll hit that but probably drop to high 9s ...

do you think just Ford will perform that awful and drop to single digits? or are you basing this off of an overall down market? Because I think Ford has a lot going for them right now and there is no real reason for it to drop that low.

Quote:

Originally Posted by drumlawyer 

I have a pending buy order for 1000 shares at $10.50.  Mark my words, it'll hit that but probably drop to high 9s ...

debt equity ratio is rather bad........

That's the "classic" scenerio, but I like to keep some of the profit from the sale of the call options to lower my initial cost.

I think Ford is a bad example, but here's one:

Initial cost = 1000 shares at $14 = $14,000

Sell the F Jan2013 $15 calls for $1.64 = $1640

Now your cost = $12,360 ( just like you bought the shares for $12.36 per share )

Take some of that profit and buy F Dec2011 $12 puts for .57 = $570

Now your cost = $12,930 ( just like you bought the shares for $12.93 per share ) 

Now you're protected under $12 till Dec2011, and may have to sell at $15 ., if it reqaches..  

If I were playing this, I would wait till late Tuesday / early Wednesday to put this collar on. I think there will be an upside swing ( mid 14's to low 15's ) sometime next week, prior to another drop. I am not bullsish on Ford, nor am I bullish on the entire stock market. I think we're headed for a small bear market that may last a couple months. If you wait till there's some upside, you can get more money for the calls you sell, and pay less for the puts you buy, further lowering your cost. I have to agree with several of the other people here in thinking that Ford may see $9 or $10.

I am by no means a professional trader, so please do your own homework. I simply used the above example of what I would do in this case, if I owned 1000 shares. Your trading account is your own responsability.

 

Quote:

Originally Posted by BobK 

Here's a copy/paste.

 

"A collar is a spread strategy where you simultaneously purchase a protective put and write a covered call on stock you already own. If you hold a stock whose price has risen sharply, a collar can help you protect those gains against a future drop in price. Writing a covered call helps offset the price of buying the protective put, making it relatively inexpensive to protect your profit.

 

For example, say you bought 100 shares of NRQ stock at $20 three years ago, and its current market price is $35. If you purchase a 30 put, you'll have the right to sell those shares at $30 before expiration, locking in a $10 profit on each share, or a total of $1,000. In this scenario, the price of the put cost you $300, or $3 per share.

 

To complete the collar, imagine you also write a 40 call for $275 with the same expiration as the put. If the price of NRQ stock rises above $40, the call will likely be exercised and you will receive $4,000 in compensation for the shares you must sell. Since the initial investment you made to purchase the stock cost you $2,000, you've made a $2,000 profit by using a collar.

 

Also, note that since you received $275 when you sold the call, your net cost for the collar strategy was only $25, less than one tenth of the cost of the put alone."