Ahead of Auto Data, Bears Race Toward Ford Motor Company (F)

Ford Motor Company (F) puts are crossing at a faster-than-usual rate

Digital Content Group

Mar 2, 2015 at 2:57 PM

Ahead of tomorrow's monthly report on auto sales, speculators are placing bearish bets on Ford Motor Company (NYSE:F), with puts changing hands at an accelerated clip. Most popular is the March 15 put. Data shows that some of the over 5,600 contracts that crossed here were bought to open, as traders bet on the security to fall below $15 by the close on Friday, March 20, when front-month options expire.

Puts have been growing increasingly popular among F speculators in recent weeks. Looking at data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows that the stock's 50-day put/call volume ratio of 0.35 is higher than 97% of all similar readings from the past year.

Analysts' opinions on the security are split. Six covering brokerage firms have issued "buy" or better ratings, while nine others have handed out "holds" or worse. F's average 12-month price target comes in at $16.82.

Ford Motor Company (NYSE:F) hasn't traded below $15 since Feb. 2. However, the stock is currently struggling to topple the $16.50 region, which has acted as both support and resistance since mid-2013. Plus, the March 17 strike is home to notable call open interest, which could translate into options-related resistance in the near term.

Follow @Schaeffers

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?