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Richard Thalheimer
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Richard is the founder and former CEO of The Sharper Image, and is currently running his new online company,
  • Toyota Motors doing better than you think - and check out the October 2010 $65 put option 0 comments
    Apr 4, 2010 11:00 AM | about stocks: TM

    Toyota (NYSE:TM) has certainly had its woes in the past six weeks. The stock, as we know, took about a 20% hit, dropping from $91 pre-scandal, to about $73. Since then it has rebounded to 80, and this despite the numerous class-action lawsuits and expensive recalls. All of this might lead one to be cautious.

    However, in my visit yesterday to my local dealer, it was clear that business is good - even robust. Generous incentives and no-interest financing helped propel U.S. sales in March to a 41% year-over-year increase. And this news: I asked about purchasing a new 2010 Highlander Hybrid - one of my favorite models - and was told that the wait is about 6 to 8 weeks for available inventory!

    I do not think the stock is falling anytime soon, to any significant degree. October 2010 put options are about $1.50 bid. This is seemingly about as safe a play as one can make. Sell the October $65 put option, pocket the $1.50 per share bid, and sleep well.

    Disclosure: long

    Stocks: TM
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