Ford Surges Past $7, Dow 9,000

1:30pm (EST) Forgive me for not posting my usual pre-market Blog this morning. I’ve been “relaxing”…it’s the old man’s birthday. Well, I can honestly say WE got a lot of presents this morning. I went over ALL of the positions we are following last night and at high noon every single one of them were in the green. Even Chipotle Mexican Grill (CMG, $91.50, up $2.72) has turned it around after dipping $3 in after-hours trading last night. I won’t go over all of the positions but I do want to cover Ford (F, $7.00, up $0.62). The stock is up nearly 10% after smashing Wall Street’s estimates. We have been in this trade since May and our patience has finally been rewarded after the company surprised everyone by turning a profit. For the quarter, Ford reported a profit of $2.3 billion, or $0.69 a share. This time last year? A loss of $8.7 billion, or $3.89 a share, a year ago… I profiled the Ford December 6 calls (FLI, $1.60, up $0.37) at $1.25 (5/18/09) and the December 7 calls (FLJ, $1.04, up $0.25) at $1.00. Obviously, the August 6 (FHI, $1.10, up $0.43) calls are showing the better return as they are up 65% but I had a plan back in May and it is now growing teeth. Is it to late to get in the December trades? Not if you feel Ford will be at $10 by year-end. I will give another update tonight or Friday morning… Rick@MomentumOptionsTrading.com Note: If you left the Chipotle August 90 calls (CMGHS, $2.20, flat) open yesterday then you escaped harm’s way. The options have hit a high of $2.90. I won’t be covering this trade anymore but most stock that trade $90 hit $100.]]>

Leave a reply Cancel reply

CFTC Disclosure:

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.