Ford Motor Company (F)

[Buell]

Love these guys!

www.marketintelligencecenter.com

Market Intelligence my ass! lol

Ford Motor (F) Showing Bearish Technicals With Support At $14.67

Posted: Monday, April 04, 2011 8:49 AM EDT

Ford Motor (NYSE:F) closed Friday's choppy trading session at $15.16. In the past year, the stock has hit a 52-week low of $9.75 and 52-week high of $18.97. Ford Motor stock has been showing support around $14.67 and resistance in the $15.67 range. Technical indicators for the stock are Bearish and S&P gives F a positive 4 STARS (out of 5) buy rating. For a hedged play on this stock, look at the Sep '11 $15.00 covered call for a net debit in the $13.73 area. That is also the break-even stock price for this trade. This covered call has a duration of 166 days, provides 9.43% downside protection and an assigned return rate of 9.25% for an annualized return rate of 20.34% (for comparison purposes only). A lower-cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the F Jan '12 $12.50 call and selling the Sep '11 $15.00 call for a total debit of $2.02. The trade has a lifespan of 166 days and would provide 4.22% downside protection and an assigned return rate of 23.76% for an annualized return rate of 52% (for comparison purposes only). Ford Motor does not pay dividends at this time. [ATU-Seven Summits Research]