Options Brief: Ford Motor (F)

F – Ford Motor Co. – Options investors wary of the potential for the auto maker’s shares to continue lower ahead of July expiration purchased out-of-the-money put options today with shares of the underlying stock off 2.00% to stand at $10.79 as of 12:35 pm (ET). Bearish options players picked up 5,000 puts at the July $9.0 strike for an average premium of $0.47 per contract. Put buyers profit if Ford’s share price declines another 20.95% to breach the average breakeven price of $8.53 by July expiration day. Pessimism spread to the lower July $8.0 strike where 1,900 puts were picked up at an average premium of $0.26 each. Investors long the lower strike put contracts make money if shares of the underlying stock plummet 28.25% from the current price to break through the average breakeven point to the downside at $7.74 by expiration in a couple of months.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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