Why one trader is selling puts in Ford
Chris McKhann | [email protected]
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)