Ford (F) has been a challenging stock in our family portfolio since 2023. The journey began when I was assigned 100 shares at $14 per share, an entry price that soon proved to be on the higher side. Ever since, I have been actively managing the position by selling covered calls and additional put options in an attempt to squeeze value out of the holding and reduce our overall cost basis.
The latest trade adjustment occurred on February 3, 2025, when I rolled forward the March 21, 2025, $10 put options to June 20, 2025, $9.82 put options. The premium received from this adjustment allowed me to purchase two additional shares, further optimizing our position.
Looking back, I still vividly remember placing my original put trade in the summer of 2023 from Marseille, France. Despite being assigned shares at $14, diligent trading strategies have helped lower our effective buy price to $11.93. Unfortunately, that is still about $2 above Ford's current stock price.
Despite the struggles, Ford remains an excellent dividend-paying stock, which provides some cushion against market volatility. Furthermore, with Trump already in office and having initiated trade wars, there is a chance that new policies could favor domestic US manufacturers like Ford. If tariffs and protectionist measures continue to be implemented, we may see Ford stock trading in the $13-$15 range again.
While Ford has been a tough position in our portfolio, continuous adjustments and strategic options trading have helped mitigate losses and extract value. As we move forward, keeping an eye on both macroeconomic trends and company fundamentals will be crucial in deciding our next steps with this holding.