Consistent income with long term option trades.

Followup on our Ford June 17, 2022 $12 Calls

I want to talk about the position we’ve been holding onto the longest so far in our portfolio.  We entered into the F220617C12 calls on 9/10/21, holding for a total of 125 days to date.  These have 154 more days until expiration.  They reached a high of $13.75 yesterday and today settled at $13.05 which would give us a 507% profitable return.

We are still holding these calls because examing order flow levels we still see a large number of stock orders sitting at the $26.60 range and we see nobody placing orders to sell below $24.40.

While not every long-term play will be this profitable each time, we don’t want members to get discouraged when they enter a trade and see the price drop 30-50%.  Back in July these Ford options were trading at $6 and if you had bought them and sold because the price dropped to $2 in a mere two months time you would have sold at a -66% loss, but because you had a year of time left you could have waited and still profited 118% 6 months later.

We will not catch the bottom of every trade we participate in, but we do examine orderflow levels of the targeted stocks and futures, social chatter, news reports, and the supply/resistance and demand/support levels from short-term and long-term charts to provide profitable trades.

Remember there will be no buying or selling this coming Monday in observance of Martin Luther King, Jr. Day.  Have a nice long weekend!