Recently we started scanning the market for some bargains. Here is how one we found is doing.

About a week ago we started looking for ways to exploit all of the chatter about this being a bottom (check it out here). After clicking through a bunch of stocks that were beat down we spotting one that had taken a few more lumps than it deserved. Ford has been heavily hit by the chip shortage but managed to produce solid Q2 numbers. Their electric F-150 is getting a lot of attention and they are positioned to see a leading role as EVs gain momentum. Yet the stock hadn’t seen any lift and remained suppressed by the broader market.

We looked at a super cheap Call option that had a expiration out a few month. This longer timeframe meant F could take its time getting the market to warm up to it and we would still be able to cash in. Even though we didn’t expect the move to happen right out of the gate, in just a week those Calls went from .11 to .25. I don’t think I would complain about getting a doubler much quicker than I had expected.

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We had noticed some support developing at the 10 day moving average and it played out as expected. That move up in the stock was all we needed to make that Call option double.

This idea of using longer term options to increase your window for a favorable move to pay out is at the core of Andy Chamber’s Market Propulsion approach. If you grab his guide to how he puts it to work growing his account you’ll see the easy to learn steps he takes to build trades just like this.

Keep learning and trade wisely,

John Boyer


Market Wealth Daily