Stock Option Investment Advice

How will Japanese Quake Affect Automakers?

On Monday, a 6.8-magnitude earthquake hit northwest Japan knocking out the production lines of a large auto part manufacturer. Reports suggest this could affect as much as 70% of Japan’s domestic auto industry.

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The four main Japanese automakers, Toyota (TM), Nissan (NSANY), Mitsubishi and Suzuki, have temporarily halted production because of damage to the Tokyo production facilities of parts maker Riken.

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Toyota, who was especially affected by the event, stated it would halt production in its15 Japanese plants today and tomorrow. The company hopes to have full production online by Monday, but it is not currently clear whether or not this will be possible.

Toyota was running on parts it had stockpiled in the days immediately following the quake. Toyota’s Japanese production lines produce 11,000 cars a day.

Japanese news reports state the parts manufacturer Riken makes 50% of the piston rings used in Japanese automaker engines and 70% of transmission sealant components.

GM News:
General Motors (GM) recently signed a deal with Serbian car maker, Zastava. This will allow the US automaker to produce the Opel Astra line of cars. The company hopes to produce 10,000 automobiles a year by 2012.

GM also said yesterday it would invest $500 million in Argentina and Brazil to develop small vehicles for Latin America.

Ford News:
The Ford Motor Company (F) is expected to receive bids today for Jaguar and Land Rover. Reports suggest the bids are likely to come from private equity firms and other automakers.

Looking at this News from an Options Trading Perspective:
Will the slight hiccup in Japanese production mean larger market shares and profits for automakers unaffected by the events? Perhaps, especially in light of the recent news about Ford’s quality improvements and GM’s renewed focus on the bottom line.

However, the primary thrust of this article is to show you, the investor, how PowerOptions‘ tools can help you find attractive and lucrative trades once you have found a trading opportunity.

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Potential Trades:
All of the following option trades have 66 days until expiration. These trades were discovered using the powerful suite of option search tools found at PowerOptions.

Covered Call Search
Symbol Stock
General Motors Corp. GM 36.00 (-0.14) GMIU 07 SEP 37.5 (66) 1.85 5.1 5.4 9.8
General Motors Corp. GM 36.00 (-0.14) GMIG 07 SEP 35.0 (66) 3 8.3 6.1 6.1
Ford Motor Co. F 8.63 (-0.10) FIK 07 SEP 8.0 (66) 0.95 11 4.2 4.2
(For more details click the ticker symbol above)

Competitors for GM include: Daimlerchrysler AG (DCX), Ford Motor Co. (F), Toyota Motor Corp. (TM), Genuine Parts Co. (GPC), Honda Motor Co. Ltd. ADR (HMC), Tata Motors Ltd. (TTM), and Westinghouse Air Brake Techs. Corp. (WAB).
Competitors for F include: Daimlerchrysler AG (DCX), General Motors Corporation (GM), Toyota Motor Corp. (TM), Honda Motor Co. Ltd. ADR (HMC), and Tata Motors Ltd. (TTM).
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.

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[tags] Japan, Japanese, DCX, DaimlerChrysler AG, F, Ford Motor Co., GM, General Motors Corp., GPC, Genuine Parts Co., HMC, Honda Motor Co. Ltd. ADR, NSANY, Nissan Motors AD, TM, Toyota Motor Corp., TTM, Tata Motors Ltd., WAB, Westinghouse Air Brake Techs. Corp., covered call investment strategy, investment strategy, iron condor, options trading, poweroptions, stock option trading, stock options [/tags]

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