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Ford Stock Falls Back on Bronco SUV Delays

The $10 level has proved troubling for Ford stock in the past

Digital Content Manager
Dec 7, 2020 at 11:19 AM
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The shares of Ford Motor Company (NYSE:F) are down 1.7% at $9.19 during today's trading, following a Friday announcement that the firm is pushing back the launch of its Bronco SUV until summer 2021. Ford cited issues linked to the pandemic, and problems with suppliers. The new SUV was originally set to launch during spring, and already has over 90,000 preorders. 

Today's dip marks a pullback from the equity's recent 11-month peak, which ran into trouble just below the $10 level before hitting a fresh annual high. This region has proved resistant in the past, with several rally attempts back in late 2019 and early 2020 capped by this ceiling. In the past nine months, though, F has managed a more than 55% pop. 

Analysts remain hesitant, however. Just three of the 11 in coverage call Ford stock a "strong buy," compared to eight "hold" ratings. What's more, the 12-month consensus price target of $9.04 sits at a slight discount to current levels. 

Despite today's negative price action, calls are still outnumbering puts, and being traded at a slightly quicker clip than usual. In fact, 33,000 calls have crossed the tape so far, which is 1.2 times the intraday average. Most popular is the weekly 12/11 9.50-strike call, followed by the January 2021 10-strike call. 

This penchant for calls has been the norm. In the past 10 days, 8.1 calls have been picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all other readings from the past year, too, suggesting these bullish bets haven't been more popular in the last 12 months. 

 

 

 

 

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