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)

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. 



Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1