There is speculation in the air about whether Ford will retain its majority ownership of Jaguar and Land Rover as the formerly 2nd largest car manufacturer announced it will no longer be the majority share holder in the Aston Martin luxury brand. Some analysts feel the time may be right for Ford to get an attractive bid for its luxury brands.
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This news about Ford affords the PowerOptions weblog the chance to look at the rising and falling fates of the world’s automotive oligarchy.
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The Major Players:
It was speculated recently General Motors would buy the beleaguered Chrysler brand in an attempt to avoid the loss of its #1 status. However, investors widely agree this would be a foolish move, as GM seems to be on the road to financial recovery. And, possibly more importantly, car enthusiasts are excited about some of the recent offerings from the company like Cadillac’s BLS and the Chevy Volt, an electric driven hybrid with the option of being totally electric.
Toyota is likely to be the #1 car manufacturer this year and it appears the sky is the limit for this company. They could rest on their laurels and still churn out a better value and more innovative product. Industry experts have said Toyota remains on top because can make better cars for less and, because of their reputation, can sell them for more than their competitors.
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Some say the best thing would be if Daimler Chrysler sold the Chrysler brand to the Chinese. Of course this could be pure fantasy as last week Shanghai Automotive Industry Corp. publicly denied any interest in acquiring Chrysler.
Many of the other major auto players are listed in the chart below. We will pick through these covered call option trades for the most attractive investments. You too can sort through the thousands of option trading opportunities for the investments you feel best suit your needs with PowerOptions search technology. You can define and save your own personalized search based on dozens of criteria.
Potential Trades:
All of the following option trades have 40 days until expiration and were discovered using the powerful suite of option search tools found at PowerOptions.
| PowerOptions covered call search (40 days) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
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| GM | $31.32 | GMDF | 07 APR $30.00 | $2.55 | 8.10% | 4.30% | 4.30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DCX | $70.24 | DCXDN | 07 APR $70.00 | $2.85 | 4.10% | 3.90% | 3.90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| F | $7.42 | FDJ | 07 APR $7.00 | $1.05 | 13.40% | 3.40% | 3.40% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TM | $133.40 | TMDG | 07 APR $135.00 | $2.95 | 2.20% | 2.30% | 3.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HMC | $36.60 | HMCDG | 07 APR $35.00 | $2.00 | 5.50% | 1.20% | 1.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Ford and GM Trades:
The Ford covered call trade, an in the money covered call, offers 13.4% downside protection and a potential profit of 3.4% if the stock remains unchanged or rises. The break-even price of this trade is $6.77. The net cost of this trade, per 100 options, is $677.00.
The GM covered call trade, an in the money covered call, offers 8.1% downside protection and a potential profit of 4.3% if the stock remains unchanged or rises. The break-even price of this trade is $28.77. The net cost of this trade, per 100 options, is $2,877.00.
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
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PowerOptions‘ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags] Jaguar, Land Rover, Chinese, Shanghai Automotive Industry, covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]