Ford Reports After GM's Record Breaking Quarter

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October 22, 2025

General Motors doubled market expectations with a 15% post-earnings surge while implied volatility collapsed.

🕒 Market Overview: GM delivered a 15% single-day surge on October 21, doubling the 6.5% move priced into options markets.

🔄 Sector Insight: Traditional automakers show operational resilience as GM reduces tariff impact projections and rightsizes EV investments.

💰 Today's Trade Idea: Bull Call Option on Ford ahead of October 23 earnings with technical support from sympathetic sector movement.

SMART TRADE IDEA

Bull Call Option on F

Trade Setup:  Buy $13 Call Option, November 21, 2025, expiration.

  • Cost:  $0.29 ($29 per option)

  • Max Profit: Unlimited

  • Breakeven:  $13.29

Management Plan: Sell a higher strike call option ($14, $15, or higher strike) at $0.30 or higher if F shares rally after earnings.

The $13 strike call option on F is highly liquid with substantial open interest, resulting in tight bid-offer spreads for execution. Meanwhile, if the GM earnings reflect a sector-wide improvement due to the U.S. administration’s policies, F could surprise on the upside when it reports earnings after the close on October 23. The $13 call option for November 21, 2025, expiration could offer significant value at $0.29 or lower. 

NOTE: Remember, options trading involves substantial risk and is not suitable for all investors. Consider your investment objectives, financial resources, and experience level before implementing this or any options strategy.

DISCLOSURE: Trade recommendations may have changed since publication. Evaluate current market prices and risk/reward before acting. Trading involves significant risk and is not suitable for everyone. This is not personalized investment advice. Past performance doesn't guarantee future results. Publisher and contributors may hold positions in recommended securities. Readers assume full responsibility for their trading decisions. Consult a financial professional before investing.

Andy Hecht | Smart Analysis

Wall Street veteran and analyst covering technical and fundamental factors in markets across all asset classes for over four decades.

No one should be surprised that GM outperformed earnings estimates, given that the U.S. administration’s trade policy clearly favors U.S. automobile manufacturers. After blowing away EPS and revenue forecasts on October 21, Ford (F) will report on October 23. GM shares have moved over 24% higher from the October 14 low of $54.33 to the October 22 high of $67.55 per share. Ford (F) will report its earnings after the close tomorrow, October 23, 2025, with the consensus forecasts for around 36 cents EPS and revenue of $43.86 billion.

The chart shows that Ford shares have moved 11.4% higher from the October 14 low of $11.34 to the October 21 high of $12.63. Short-term technical resistance is at $12.80, with the medium-term upside target at the July 2024 high of $14.40 per share. If F’s earnings beat the estimates, the shares are likely to follow GM higher. At under $12.40 per share, the November 21, 2025 $13 call option could offer significant value below 30 cents.

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