OptionsHouse

Options Trading News

September 21, 2012  Fri 9:55 AM CT

F: SEE CHART GET CHAIN FIND STRATEGIES
Ford has been rebounding from a long slump, and one trader apparently believes that the auto maker will hold its recent gains through mid-2013.

A trader sold 7,500 June 7 puts for $0.15, according to optionMONSTER's tracking systems. Open interest in the strike at the beginning of the day was just 368 contracts, so this is clearly new activity.

F is off a penny this morning at $10.43 after ending Wednesday's session at $10.59, its highest close since June 20. Shares hit $8.82 at the start of August, their lowest level since November 2009.

The put selling sees Ford remaining range-bound through that long-term expiration. The trader has an initial bullish bias but can profit with the stock anywhere above $6.85 at expiration. (See our Education section)
Share this article with your friends


Related Stories

F

Will Ford run into more speed bumps?

May 25, 2016

A large trader is positioning for a possible drop in the auto maker, which beat estimates on April 28 and is up 6 percent in the last three months.

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

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »