Ford Stock Dips After Idling F-150 Production

The security boasts a 40.7% rise in 2021

Assistant Editor
Mar 26, 2021 at 10:39 AM
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The shares of Ford Motor Company (NYSE:F) are creeping lower this morning, after the car manufacturer announced it will halt production of the F-150 pickup truck through Sunday at its plant in Michigan, due to the global semiconductor shortage. The automaker went on to say that the move is part of its forecast of a $1 billion profit loss in 2021 due to the shortage. At last check, F is down 0.5% to trade at $12.26.

On the charts, Ford stock logged a nearly five-year peak of $13.62 on March 15, but has steadily pulled back on the charts since then. In fact, the equity yesterday dipped below $11.80 before rising back above the supportive $12 level. However, with longer-term support at the 50-day moving average, F has managed a 40.7% year-to-date raise.

Concerning Ford stock's option pits, there's been an overwhelmingly bullish sentiment over the last 10 weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), F's 50-day call/put volume ratio of 6.05 stands higher than 82% of readings in its annual range. This means calls are being picked up at a faster rate on a long-term basis.

And these premiums can be had for a bargain at the moment. The stock's Schaeffer's Volatility Index (SVI) of 45% stands higher than just 10% of all other readings in its annual range, implying options players are pricing in relatively low volatility expectations at the moment.

 

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