DailyPlay – Opening Trade (F) – May 16, 2022

View F Trade

Strategy Details

Strategy: Long Call

Direction: Bullish

Details: Buy to Open 8 Contracts January 20, 2023 $13 Calls @ $2.34 Debit.

Total Risk: This trade has a max risk of $1,872 (8 Contracts x $234 per contract).

Counter Trend Signal: This is a Bullish trade on a stock that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 4/10

OptionsPlay Score: 66

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade. 

Investment Rationale

Our bullish idea today is Ford (F). F has declined 53% since its all-time high in Jan 2022 and experienced a bounce higher from the $12 level last week. This decline means that F is now trading at roughly 13x earnings which is a significant discount from its historical average. Additionally, F’s fundamentals remain strong with solid EV demand, good EPS forecasts and having its new EV cars oversubscribed. The next clear resistance area is near the $16 level.