Ford Motor Company (F) $10.79 +1.55%
Massive prints in Ford Motor (F) Friday morning. Shares are up 16 cents to $10.78 and one player bought 150K Sep 12 calls. They also sold 75K Sep 14 calls and sold 75K Sep 15 calls. They paid 68 cents for the spread. Looks like a new position (although the 14s might close) and a bet that the automaker’s shares will climb towards $14 through the September expiration. Earnings due out late July, early August.
Category: All Stocks, Automobiles & Parts, Large Cap Stocks
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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.
I think they paid $0.34 (=$0.41 – ($0.09+$0.05)/2), right?
yes, prices are correct. Some would say, 41 X 2 – 9 – 5, or 68 debit because there’s twice as many of the 12s. If it was a tree (1 X 1 X 1) instead of a ratio spread (2 X 1 X 1), it would be 34 cents.