Mike Shorr went on Schwab Network to break down a vertical spread position in Ford [F] following the company’s recent arnings release. He walks through why implied volatility changes the play right after a report, the exact spread he’s using instead, and why he thinks the market’s recent pullback might actually be a good thing.
Mike covers:
- Why he likes everything about the earnings but won’t just buy calls right after a report
- The specific vertical spread he’s using instead, and the reward to risk he’s locking in
- How the strike he picked lines up with Ford’s 52-week high
- Why he thinks the market’s recent pullback is actually a good sign
