AAL

Ford Motor Company (F) Catches the Eye of Short-Term Skeptics

Ford Motor Company's (F) weekly 4/10 14-strike put is in focus today

Mar 24, 2015 at 3:11 PM
facebook X logo linkedin


Put players have been active in Ford Motor Company's (NYSE:F) options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, the equity's 50-day put/call volume ratio of 0.34 ranks higher than 86% of similar readings taken in the past year.

Echoing this is F's Schaeffer's put/call open interest ratio (SOIR) of 0.78, which rests in the 78th percentile of its annual range. In other words, short-term speculators are more put-heavy than usual toward the security.

Today, F's weekly 4/10 14-strike put has received notable attention, and it appears new positions are being purchased here -- a theory echoed by data from the ISE. By buying the puts to open, speculators expect F to breach the $14 level by the close on Friday, April 10 -- when the weekly series expires.

Technically speaking, F has been churning between $14 and $17 since early November, and was last seen lingering near $16.54. Although the equity was trading south of $14 as recently as December, today's put buyers can rest easy knowing the most they stand to lose -- should Ford Motor Company (NYSE:F) be sitting north of the strike at expiration -- is 100% of the premium paid.

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.