OptionsHouse

Options Trading News

May 7, 2013  Tue 11:24 AM CT

F: SEE CHART GET CHAIN FIND STRATEGIES
A large complex call spread tops today's option activity in Ford as shares move back toward their January highs.

The strategy involved 10,000 January 15 calls that traded for $0.72 in volume well below the previous open interest of 169,905, according to optionMONSTER systems. At the same time 20,000 January 19 calls were sold for the bid price of $0.08 with no open interest at that strike.

This could be a new vertical spread that is looking for shares to rise to, but not beyond, the $19 level. Alternatively, the trader could be rolling a short-call position to a higher strike while doubling its size. The latter would have an initially bearish bias but could profit with shares anywhere below $19.08. (See our Education section)

F is up fractionally to $14.11 this afternoon. The auto maker is off its highs of the morning but still at its highest level since January, when it peaked at $14.30. Shares have tested support near $12 twice in the interim.
Share this article with your friends


Related Stories

F

Bears chase downtrend in Ford Motor

June 29, 2016

The auto maker, which is down 8 percent in the last month, is scheduled to announce quarterly results before the market opens on July 28.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Know the risks behind covered calls

Selling calls is a popular strategy for both retail and institutional traders, but they typically do it in very different fashions.

View more education articles »