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Option Brief: Ford Motor Company (NYSE:F) announced it will reveal a solar version of its C-Max Energi vehicle at next week's Consumer Electronics Show, but short-term bears don't seem to be too impressed by the news. Of the 12,000 puts that have changed hands so far today, more than 5,300 have done so at the weekly 1/3 15.50 strike.
Nearly all of these in-the-money contracts crossed at the ask price, pointing to buyer-driven activity. What's more, today's volume has easily exceeded current open interest levels at this strike, and implied volatility has ticked 7.3 percentage points higher since the opening bell, signaling the initiation of new bearish bets.
In order for the weekly put buyers to profit, F must retreat below breakeven at $15.30 (strike price less the volume-weighted average price of $0.20) by tomorrow's close. This is just a stone's throw away from the security's present perch at $15.37.
Ford Motor Company (NYSE:F) sports a 52-week gain of roughly 17%, but has been struggling to recover since suffering a sharp bearish gap on Dec. 18, after the firm warned of lower 2014 profits. The news also triggered a slew of negative brokerage notes the following day.