F – Ford Motor Company – A massive bullish transaction employing 300,000 call options launched the automaker to the top of our ‘most active by options volume’ market scanner before 11:00 am (ET) this morning. Ford’s shares are currently up 1.80% to stand at $10.80 as of 12:05 pm (ET). The options strategist responsible for the enormous three-legged spread known as a call tree appears to be positioning for Ford’s shares to rally significantly ahead of expiration day in September. The investor purchased 150,000 calls at the September $12 strike for a premium of $0.41 apiece, sold 75,000 calls at the September $14 strike at a premium of $0.09 each, and sold 75,000 calls at the higher September $15 strike for a premium of $0.05 a-pop. Net premium paid to establish the transaction amounts to $0.27 per contract, which brings the total price tag on the trade up to $4.05 million. The bullish investor starts to make money as long as Ford’s shares rally 13.6% over the current price of $10.80 to surpass the effective breakeven price to the upside at $12.27 by expiration day. The trader is poised to amass maximum potential profits of $2.23 per contract or total gains of $33.45 million if Ford’s shares trade at any price above $15.00 by expiration day in September. The sale of 75,000 calls at both the September $14 and $15 strikes implies the trader makes money on a 1-to-1 basis if shares rally above $12.00 and continue up to $14.00, but if shares rally above $14.00, profits amass on a position that is half the size of the original due to the short stance taken at the September $14 strike. Essentially the call tree was purchased by an investor expecting Ford’s shares to heat up in the next couple of months. If the stock fails to rally above $12.00 by expiration, however, the investor will lose the full $0.27 premium per contract paid to purchase the enormous trade.