Ford Motor (F), which gained 3.9 percent yesterday after reporting a 22-percent increase in May auto sales, is up another 22 cents to $12.07 early Thursday. In the options market, a noteworthy four way trade involved the purchase of 14K July 11 puts at 33 cents. The strategist also sold 7500 Jun 11 puts at 14 cents, 6500 Jun 12 puts at 39 cents, and 85K shares at $12.01. The overall action looks like a position adjustment, or closing out June to open a similar defensive or bearish position in July 11 puts. Implied volatililty in Ford is down 8 percent to 44 today, and now well below the late May highs around 66.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.