OptionsHouse

Options Trading News

April 26, 2013  Fri 5:16 AM CT

F: SEE CHART GET CHAIN FIND STRATEGIES
Ford has been on a stealth run, and yesterday activity built rapidly in the options.

optionMONSTER's Heat Seeker system showed steady flow in the May 14 calls, with early buyers paying $0.09 to $0.12. Volume topped 25,000 barely an hour into the session and ended the day close to 39,873 contracts--well above the strike's previous open interest and therefore new positioning.

Long calls lock in the price where shares can be purchased. That can give them leverage to the upside, something that we saw yesterday because the stock inched higher and those calls rose more than 10 percent to $0.14. (See our Education section)

F rose 1.05 percent yesterday to close at $13.47. It has not made any explosive moves this year, but quarterly results were strong earlier in the week thanks to a rebound in North American sales.

Yesterday's option activity was skewed toward the calls by more than 5 to 1, a reflection of the session's bullish bias. Total volume was almost triple the normal amount.

Disclosure: I own F calls.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

F

Put buyers bet Ford may hit the brakes

May 19, 2016

The car manufacturer blew past earnings expectatons but fell short in revenues on April 28, and traders are positioning for downside potential.

OptionsHouse

Premium Services

Education & Strategy

The Optimal Strategy

I was talking to a friend of mine the other day. He is an experienced options trader with floor experience and we were discussing my recent QQQ trade.

View more education articles »