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NEW YORK ( TheStreet) -- Tapering talks weighed on equities in June and again in August. But so far, the auto industry has continued to outperform, and in it, one stock has continued to lead the group: Ford(F - Get Report).
Sales remain robust, evident after the company beat monthly sales estimates for May and June. For July, Ford
posted total vehicle sales of 193,715, an 11% increase, missing analyst estimates by about 3%.
Thought the stock would selloff on that news? Think again. It was also thought that after the run up into earnings, the stock would again, selloff a bit -- at least, by me. But that also wasn't the case.
For second-quarter earnings, the company crushed top-line estimates of $35.15 billion by nearly $3 billion and bottom-line estimates of 37 cents per share by 8 cents. That alone could fuel a rally, but then the company's management revealed its European losses were finally shrinking, ($348 million versus $404 million in the same quarter last year), something that has been plaguing the stock for multiple quarters.
After earnings, the stock gapped higher to $17.50, before selling off slightly, to the upper-$16 range. After the July sales numbers were reported in early August, the stock quickly ran higher and tested $17.50 once again. The bears have won that level so far, but that won't likely be the case for long.
F data by
The Detroit automaker continues to press higher and has presented only a few buying opportunities throughout the year, the last one coming when the stock sold off to its 50-day moving average, closing slightly above it, at $14.67.
Now, with some relative weakness in the broader market, shares of Ford made an intraday low of $15.82 on Aug. 20, after another mini-pullback. With its most recent close at $16.41 on Thursday, the stock is down roughly 6% from its monthly high. Now you're probably wondering, "How the heck do I buy shares at $14.60?"
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The answer is by selling puts, which is often times an overlooked strategy. The thought of holding naked put options -- which is the term used when shorting single-leg call and put options -- is considered highly risky and only for the sophisticated investor.