Toyota Stock Shifts Lower on Production Cut Update

Toyota Motor Corp (NYSE:TM) stock is down 1.8% to trade at $161.49 ahead of the open, after the company announced plans to slash its production by up to 20% in April, May, and June. The move comes as the automaker looks to help struggling suppliers meet the demand for computer chips and other parts amid supply shortages. 

On the charts, the shares had just found a new ceiling at the $165 area, after falling to their lowest level since May 2021 on Tuesday. TM has spiraled since nabbing an all-time high of $213.74 on Jan. 13, and is now off more than 11% in 2022.

It's worth noting, however, the shares are sitting in "oversold" territory, with a 14-day Relative Strength Index (RSI) of 28. This could be indicative of a short-term bounce. 

Still, call traders have ramped up their positions on Toyota Motor stock in the last two weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 8.95, which stands higher than 88% of readings from the past year. This implies a healthier-than-usual appetite for calls of late.