F: 4:1 Call:Put Ratio Assurance

As you all know the Government just extended the cash for clunkers bill by an additional 2 billion dollars. This is very good news regarding the big three because it will further propel incentives for people to buy brand new cars!!! Confidence aspired by this extension will be reflected by further appreciation in Ford's stock price. Another reassuring point is the 8 dollar August Call to Put ratio. A call option is the right to buy the underlying asset at the strike price. Call options are purchased when investors plan on stock price appreciation. On the otherhand put options are utilized when investors have a bearish outlook. Ultimately the point I am getting at is that people are very bullish regarding Ford motor company both because of government intervention by way of cash for clunkers and the overly bullish attitude displayed by the Call/ Put ratio.