Yo Pit Crazies,

Once again, the Fed walked the line of sounding tough on inflation but flexible enough to change. 

I don’t know how the central bank taking $30 to $60 billion out of the economy every month via quantitative tightening is bullish, yet here we are. The S&P 500 was up over 3% at one point yesterday!

The Ford Motor Co (Ticker: F) is an even bigger wow, with the stock up $1 after hours on a real earnings surprise – and F might even up their dividend. This is a stock Frank Gregory and I have done well in for Capitol Gains and we are currently riding calls.

I think there is more in F now, so let’s go look.

F Is 1/10 the value of Tesla

Frank’s idea was that Ford was an undervalued property while Tesla Inc. (Ticker: TSLA) was a bit overvalued.

Funny enough, both F and TSLA were back to the same price we first started looking in April 2021 …

The difference is Ford will pay a .15 dividend per quarter and TSLA will not.

That is around 4.4% per year, about half as much as inflation. This would make Ford a great candidate for my SpyMaster Div+ Strategy, too.

I expect to sell some put spreads in F today against my long call premium, and I expect it will pay.

The Rundown

Capitol Gains

I closed some Taiwan Semiconductor Mfg. Co. Ltd. (Ticker: TSM) call calendars for  a 23% gain yesterday and will close the Invesco QQQ Trust (Ticker: QQQ) put flies for what I can get today.

Power Income Trader 

Barclay 20+ year Treasury Bond Fund ETF (Ticker TLT) Aug19 116/120/124 call butterfly closed for a 33% gain as Bill sets up the best acro record in the business.

To Your Trading Success,

AG