Ford Stock Could Soon Shift Higher

An shift in analyst sentiment could give the shares a boost

Dec 14, 2021 at 11:12 AM
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Ford Motor Company (NYSE:F) has recently been a highlight of the electric vehicle (EV) sector, after overwhelming demand for the company's F-150 Lightning electric pickup truck caused the company to stop taking order reservations on the waitlist. On the charts, F found support at its +100% year-over-year level. Plus, the stock is trading above the $18.50-$18.80 region, which coincides with its 2011 peak and half of its 1999 all-time high. Ford stock has been buying time above the $20 level, but Monday's pullback to its 30-day moving average – a trendline of resistance through August and September -- could be signaling a breakout. With this technical foundation in place, now looks like a good time to buy calls.

 

 
Year-to-date, the equity is posting a 140% gain. Despite this, plenty of analysts are still hesitant on the automaker. Of the 12 analysts in coverage, five carry a "hold" or worse rating.
 
Plus, F's Schaeffer's Volatility Scorecard (SVS) sits at an 87 out of 100. This implies that the security has exceeded options traders' volatility expectations during the past year.
 
Our recommended call option has a leverage ratio of 4.9, and will double in value on an 20.4% rise in the underlying equity.
 
Subscribers to Schaeffer's Weekend Trader options recommendation service received this F commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 

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