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


Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »