I was thinking of buying Ford options, maybe putting some puts in a couple of months, I think this may drop to 5 dollars? Any views
Worst is over for Ford...I own shares and added to it yesterday. Their drop in credit rating was expected, it's still better than GM's, and if you look at the South American market, F is moving alot of cars as they have cars all over the streets in Brazil and other SA countries...why? because F comitted to E85 cars that can run on higher levels of ethanol. F may be getting hurt with a glut of SUV's, but thier E85 cars will take off in the US once more filling stations convert to supplying E85.
Once the truth about E85 is fully known, the excitement will go away. It's not such a good idea. And to your question, how low will it go? Well, I know how low it can go............. zero.
The truth about E85 is very well known and ethanol in general is an extremely well covered topic among institutional investors. The lower MPG is the only 'retail' shock that E85 carries. True, it's slightly more corrosive on the setup of most current autos, but this is easily overcome with better engineering. It's not even a difficult or costly adaption.