Maksims Covered Call Options Forum

[maksim]

Ford's biggest thing is for GM/Chrysler to survive.... as the supplier are the same.

In the long term, if GM struggles, would be good for ford to take their market share.

for ford, its a fine line... need gm to be ok, but not amazingly well,

If GM/Chrysler go bankrupt, it will have a bad effect on supplier, and the image in general.

Otherwise, Ford doesnt need the money, just a fallback if need be. When credit markets survive, they can refinance.

On the other topic, Calendar spreads/ Option backed buy - writes, while you dont tie up your cash, you do have to have margin in the account as it is considered a calendar spread, and requires level 1 margin in the account. I think bare min $2k?

Otherwise, to buy calls, even if you only have $250 in account, you can buy as much as you want with options.

With calendar spread, even if it costs you $250, you need a min of 2k i believe as margin.