FORD beats estimates.....Up to $5.53 in Pre-market!!!

If you're going to trade options you'd better know your Greeks (hope it makes sense):

Delta
Estimates how much the theoretical value of option price will change when the price of the underlying stock changes by $1, assuming all other variables are unchanged.

When the delta is near 1 for Call or -1 for Put, the options will begin to trade like a stock, moving almost dollar for dollar with the stock price.

Long calls have positive delta; short calls have negative delta.
Long puts have negative delta; short puts have positive delta.
Long stock has positive delta; short stock has negative delta.

Gamma
Gamma estimates how much delta would change if the price of the underlying stock changes by $1. So, gamma can tell you how “stable” your delta is.

Both long calls and long puts always have positive gamma.
Both short calls and short puts always have negative gamma.
Stock has zero gamma because its delta is always 1.00 – it never changes.

Theta
Measure of the rate of decline of option’s time-value resulting from the passage of time (time decay). Theta provides an estimate of the dollar amount that an option price will lose each day due to the passage of time and there is no move in either the stock price or volatility.

Long calls and long puts always have negative theta.
Short calls and short puts always have positive theta.
Stock has zero theta – its value is not eroded by time.

Vega
Measures the sensitivity of an option’s price to changes in Volatility. Vega estimates how much an option price would change when volatility changes 1%.

Long calls and long puts both always have positive vega.
Short calls and short puts both always have negative vega.
Stock has zero vega – it’s value is not affected by volatility

Rho
Measure of the change in an option's price due to a change in interest rate. Rho estimates how much the option’s price will change when interest rates changes by 1%

Long calls and short puts have positive rho.
Short calls and long puts have negative rho

Hope you're still here but this only a very brief introduction to options (I would advise you to Google the Greeks and read about them before trading).

Greetz and happy investing Ray

P.S. Jake, I enjoy you're posts very much, keep up the good work! Personaly I've promised myself to dedicate myself to RE and not trade the stock market any more for the moment (although it's very tempting at this moment).