Alex VG's  Instablog

Alex VG
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I am an independent trader of options and stocks with 2 years of experience. I am a recent work in the investment area and analyst of Agriculture,Hi-Tech,Finance sector's. I am also studying to sit for the CFA exam in 2015. If you interested in my article but you prefer Russian Language you can... More
  • Simple Reason's To Be Interested In FORD + OPTION CONCEPT FOR JUNE 0 comments
    Feb 5, 2014 2:24 PM | about stocks: F


    How you can see at graph of fundamental data Ford vs Competitors Ford Look's more attractive then competitors because:

    1)FORD Have Highest Market Capitalization

    2)Lower price for Shares

    3) EPS are high (This ratio one of most popular for Investors)

    4)Revenue growth are higher then average

    5)ROE ratio is highest in Competitors list

    6)Dvd Yld is highest too (This ratio one of most popular for Investors)

    (click to enlarge)

    Point A

    Target price is achievable how we can see from Historical price Chart

    Point B

    After significant slide at the end of 2013 and Start of 2014 year I expect that price will be supported by higher demand in Domestic Market in this year so potential upside is persist

    Point C

    Target price have chosen by average between analyst recommendations

    (click to enlarge)

    Analyst recommendation's are simple how you can see at chart company now located at BUY zone

    (click to enlarge)

    Options strategies have chosen co's they are low cost and they able to protect in unpredictable situations so main reason low cost and high yield

    Strategy №1

    This strategy include only LONG CALL JUNE 2014 WITH STRIKE 15$

    @ -0,74$ per share

    1. this can protect of downside
    2. have unlimited profit in bull case

    Strategy №2

    This strategy include only SHORT PUT JUNE 2014 WITH STRIKE 13$

    @ +0,34$ per share

    1. have risk's at bear case with unlimited loses
    2. 100% profit get at beginning of the deal

    Strategy №3

    This strategy is mix of strategy #1 & strategy #2

    SHORT PUT JUNE 2014 WITH STRIKE 13$ @ +0,34$ per share

    LONG CALL JUNE 2014 WITH STRIKE 15$ @ -0,74$ per share

    1. higher profit curve then in strategy 1 in bull case too unlimited in bull case
    2. selling put are compensate the part of cost of buying call
    3. but higher loses at bear case than in strategy 2

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: F
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