TOOLS

Stocks vs. Options: Which generates better returns?

Plug in your stock idea to find options trades offering a potentially better ROI.

Learn more about the OptionFinder

QUOTES

Enter a stock ticker symbol above
to find charts, news, and analysis.

Symbol Price Change % Change
LOW 25.04 0.00 0.00%
GOOG 560.95 -2.23 -0.40%
X 60.91 +0.22 +0.36%
JPM 43.15 +0.08 +0.19%
SPX 1,150.51 0.00 0.00%

Clear recent quotes

MARKETS

VIX 18.00 -0.00 (-0.00%)
VIX 18.00 -0.00 -0.00%
Dow (DJX) 106.42 -0.00 -0.00%
Nasdaq (NDX) 1920.09 -0.00 -0.00%
S&P 500 (SPX) 1150.51 -0.00 -0.00%
CLOSE
home > Analysis>Mad About Options
Stock Traders:
5 Ways That Options Can Make You a Better Stock Trader

NEW TO OPTIONS?
Visit our New to Options page to learn more.
Find out more »

10 Ways Options News Can Improve Your Stock Trades

Option strategies for bulls, bears on Ford (NYSE: F)

February 5, 2010 7:42 EST Related Symbols:

you're watching: Mad About Options
What's Mad About Options?

An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.

In This Episode

Find out Jim Cramer’s take on Ford and potential option strategies.

The Pick – Ford Motor (F):

On Feb. 3,

Mad Money host Jim Cramer said,” Toyota Motor’s recall is probably going to be far more damaging than most people realize, but TM’s pain will be a gain for domestic automakers, with Ford Motor still going higher.” F shares were trading at $11.64, at the time of Cramer’s call.

BULLISH Option Trading Idea for F:Bull call spreads –

 

  • Buy five September 7-12 call spreads for $3.50 each
  • Net cost of $10.50

    • Maximum risk: $10.50 plus commissions

    Maximum potential profit: $4.50 minus commissions

    Breakeven: The strategy will be profitable if F shares are trading higher than $10.50 at September expiration.

    BEARISH Option Trading Idea for F:

    Put butterfly–

    • Buy June 17.5-11 put spreads for $5
      • Sell June 11-8 put spread for 70 cents
      • Net cost of $4.30

      • Maximum risk: $4.30 plus commissions

      Maximum potential profit: $2.20 minus commissions

      Breakeven: The strategy will be profitable if F shares are trading lower than $13.20 at June expiration.

      Visit OptionsHouse and www.ONN.tv for new tools that can help you evaluate potential trades. Check out the ONN.tv OptionFinder to evaluate your own potential trades. Any questions? Give us your feedback and ask Jud all your pressing questions.

       For more trading ideas and breaking news on the options market, stay tuned in to The Options News Network.

       

    Related Symbols - Recent Coverage

    Latest ONN Videos