I did a synthetic call on Ford at $10 for Jan 14 expiration. The Jan 14 $10 call is now selling for $4.15/$4.20 and stock closed at $14.11 today. The upcoming Ex-Dividend date is 01/28/13. Is there any good reason for not exercising the call option and earning the dividend as it is more than the TV? After exercising I can continue to write covered calls and collect the premiums.RC
Only if you don't want to own F or already own too much. I am long F at under $10 and glad for it. Not as good as Kahuna who was more courageous earlier, but pretty good. I see lots of good things comming as customers replace cars (average age on the road 11 plus, I think) and we get the occasional glimpse of better times. This might take 4 years or so, but I see it as inevitable, and F benefits from perception that GM and Chrysler are less than trustworthy, as well as treating their shareholders (div increase) and customers right. I am not a F employee as some on this board are, so I come from a pretty independent view. I'm not even much of a F guy having driven mainly Subaru, Toy, Chrysler over my life... I do have a beater Ranger 97 127,000 mi and still holding up to my abuse. I don't think its a tough decision if you want to own F, as I am a net buyer under 10 and that may be too conservative....
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