Ford's $10 level will be worth watching for options traders in the coming weeks
Yesterday we took a look at some data on the Automobiles and Parts sector, noting that almost all of the names in the group are trading above the 80-day moving average. What we didn't mention, though, was that the one name that isn't atop its 80-day trendline is Ford Motor Company (NYSE:F), which has actually seen consistent pressure from the moving average since its July bear gap.
Still, the shares of the automaker are trying to move higher today on news that the company will begin taking orders for its new electric SUV next week, a vehicle that's going to use its famous Mustang name. F shares have moved up 0.5% as a result, last seen at $8.85, but of course this leaves them below the 80-day moving average, last seen near the $9 level.
Turning to the options pits, we should call attention to the accumulation of open interest at the December 10 call. Data from the major exchanges shows a mix of buy- and sell-to-open activity here, making this round-number level one to watch in the weeks ahead, with many traders betting on a breakout, versus plenty of others who see the $10 mark as a roadblock for Ford.