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

Big downside position extended in Ford

April 15, 2016

A large trader is positioning for a possible decline in the auto maker before it reports quarterly results on April 28.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Market Level Making You Nervous, Huh? Part 3

In last week's article, we discussed how important the extra cash you save by using the Stock Replacement Strategy over buying the actual stock is! That extra cash in our account instead of being unnecessarily tied up in a stock position allows us to buy the puts we would need to protect our downside in the case of a major sell-off.

View more education articles »