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Short-term option bulls are targeting reeling Ford Motor Company
The 20 stocks listed in the table below are the S&P 500 Index (SPX) components that have attracted the highest weekly options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is Ford Motor Company (NYSE:F), where options traders are eyeing the $14 level.
Ford Motor Company is off 3% this morning at $13.97, following its third-quarter earnings report. While the company posted an earnings beat, poor results in Europe and Russia -- as well as costs associated with transitioning its F-150 pickup to aluminum from steel -- are weighing on the shares.
Nevertheless, options traders are taking an upbeat approach to F, with calls crossing at a 46% mark-up to the average intraday rate, and outnumbering puts by a nearly 4-to-1 margin. What's more, the stock's 30-day at-the-money implied volatility has edged 1.3% higher to 27.9%, signaling elevated demand for short-term strikes.
Looking more closely, F's two most action options are the weekly 10/31 and 11/14 14-strike calls, where more than 7,000 total contracts have been exchanged. The majority have traded at the ask price, and volume outstrips open interest, pointing to buy-to-open activity. In other words, these speculators anticipate Ford Motor Company (NYSE:F) will muscle back atop $14 by the respective expiration dates.