Ford Motor Company (F) Latest Promo Fails to Inspire Option Trader Optimism

One group of traders is betting on extended loses for Ford Motor Company (NYSE:F)

Josh Selway
Oct 29, 2015 at 12:15 PM
facebook twitter linkedin


Ford Motor Company (NYSE:F) is still trying to recover from its earnings miss earlier in the week. The auto stock is down another 1.8% today at $14.70, even after the company announced its "Friends and Neighbors" promotional event, as it looks to boost sales before the end of the year. Judging by activity in the stock's option pits, some traders aren't impressed. 

The numbers reveal put activity is running at a faster-than-usual pace today on F. The most popular option by far is the December 12 put, and it appears traders are buying it to open. By doing so, they're betting on the shares to breach $12 before the options expire at the close on Friday, Dec. 18. Delta on the contracts currently sits at just negative 6.3%, signaling a low probability these options land in the money. 

Generally speaking, option traders have been relatively bullish in F's option pits. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio stands at 4.58 -- higher than 89% of all readings from the past year. 

Looking at the charts, Ford Motor Company (NYSE:F) hasn't been too impressive. The stock is now 5.2% lower in 2015, and is now poised to close below its 20-day moving average for the first time since Oct. 1. 

 


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners