How We Made 500%-Plus on Ford
Andy Snyder|November 22, 2021
The electric vehicle (EV) craze is putting money in the bank for savvy investors.
Just last week, for example, we told our Venture Fortunes subscribers to ring the register on the second half of a hugely successful option play.
We bought Ford (F) call options on October 14. We tracked down a large slug of buying activity and followed it to profits.
The company’s recent EV moves were catching a lot of attention and building huge investor excitement.
Our move paid off quickly. Within a couple of weeks, the contracts were up by more than 500%. We showed readers a chart and said it was prudent to sell half our position. Let the rest ride entirely risk-free, we said.
Last Thursday, our quick, monthlong play matured. We sold the second half of our options for a gain of well over 600%.
But now what?
Since we made our money on Ford, should we move on and forget about it? Are the biggest gains behind us?
As we tend to do… we’ll let the chart do the talking.
The first thing we can see on the chart is that we timed our October entry nearly perfectly. We bought in when the Liberty Indicator (at the bottom of the chart) went from red to green. It told us that buyers were outnumbering sellers.
It was a very bullish setup. You can see why. Shares soared after it showed up.
We also got in just as the stock was shifting from trading in the lower half of its range (indicated by the blue shading) to trading in the upper half. You can see the move took place in mid-September.
Again… very bullish.
But look at where we are today.
The Liberty Indicator is solidly in the green but is showing signs of waning. That’s not necessarily bearish, but it lowers the chances of a quick-and-easy home run like we just hit.
We’d much rather see it just turning from red to green.
Also, shares have spent the last few weeks trading above their trend line. That’s what supercharged our gains over the past month. But buying in now would mean paying a premium.
Again, a stock that’s trading outside of its range is not necessarily bearish (especially for long-term investors), but it quite often means the stock is headed toward volatile, short-term dips and a period of sideways movement.
It’s much more prudent to buy on those dips… especially when they bump up against the dotted mid-trend line on the chart.
Bottom line… if you’re a long-term investor, the chart tells us that lots of folks are excited about Ford’s prospects. Its EV offerings and its revamped management style both point in the right direction.
But if you’re a short-term trader looking for the kind of 500%-plus gains that we just racked up, there are better plays elsewhere. Wait for a dip. It will come.
In fact, our favorite play in the EV sector is not Ford. One newcomer just put in a move that has us drooling. The short-term profit opportunity is robust. And long term? Oh boy. This one is just getting started.
Andy Snyder is the founder of Manward Press, the nation’s premier source of unfiltered, unorthodox views on money and what it means for a free society. An American author, investor and serial entrepreneur, Andy cut his teeth at an esteemed financial firm with nearly $100 billion in assets under management. Andy and his ideas have been featured on Fox News, on countless radio stations, and in numerous print and online outlets. He’s been a keynote speaker and panelist at events all over the world, from four-star ballrooms to Senate hearing rooms. Today, Andy’s dissident thoughts on life, liberty and investing can be found in his popular daily newsletter, Manward Financial Digest.