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

by Karee Venema

Published on Mar 24, 2015 at 3:11 PM
Updated on Jun 24, 2020 at 10:16 AM

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.


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