Ford Motor Company (F) Calls Popular Ahead of Auto Sales

Ford Motor Company (NYSE:F) will report May sales results tomorrow

Jun 1, 2015 at 2:17 PM
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Ford Motor Company (NYSE:F) is set to report May auto sales tomorrow. Ahead of that release, the automaker's calls are changing hands at an accelerated clip. By the numbers, 24,000 contracts are on the tape, versus a typical intraday volume of 18,000.

Looking more closely, possible buy-to-open activity is detected at the weekly 6/5 15.50-strike call. These speculators are rolling the dice on F to topple $15.50 by week's end, when the series expires. In order to do so, the stock will need to overcome resistance at its descending 40-week moving average, currently located at $15.49.

Today's bias for long calls is unusual, relative to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Over the last 10 weeks, F has accrued a put/call volume ratio of 0.40, which registers in the 90th percentile of its annual range.

On the charts, F has added 1.6% this afternoon to trade at $15.41, but remains below its year-to-date breakeven mark of $15.50. This level -- along with the aforementioned trendline -- could put a quick stop to the stock's advance.

No matter what happens, short-term option buyers can rest easy knowing they paid relatively inexpensive prices for their bets. Ford Motor Company's (NYSE:F) Schaeffer's Volatility Index (SVI) of 18% ranks in the bottom one-fifth of all comparable readings taken in the last year.
 

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