OptionsHouse

Options Trading News

May 29, 2013  Wed 5:16 AM CT

F: SEE CHART GET CHAIN FIND STRATEGIES
Buyers jumped into Ford early yesterday, betting that it still has fuel in the tank.

Option activity has been red hot in the auto maker, with more than 140,000 calls trading yesterday against fewer than 35,000 puts. The 15.50 Weekly calls expiring this Friday led out of the gate and remained active all session, with contracts going for $0.08, $0.09, and $0.11. More than 18,000 of those traded in volume far above the previous open interest of 1,751 contracts, indicating new positions, according to optionMONSTER's Heat Seeker tracking system.

These long calls lock in the purchase price for the stock, which is already up 12 percent in the last month, and they can generate some nice leverage if it keeps running. Because the options expire at the end of this week, the traders are clearly banking on a quick move. (See our Education section)

F rose 3.31 percent to $15.28 yesterday. It's been on our screening systems a lot recently, with some fast and furious buying. Total option volume was almost triple its daily average yesterday.

Disclosure: I own F calls.

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


Related Stories

F

What's behind put action in Ford Motor

September 28, 2016

Traders are positioning for a possible drop in the auto manufacturer in the weeks after it reports quarterly results next month.

F

Is Ford Motor heading lower this week?

September 13, 2016

Short-term traders are positioning for more downside potential in the auto maker, which is down 6 percent in the last three months.

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »