Ford option flow running twice normal today, with calls out-trading puts 5 to 4, a bit below the recent avg ratio of 5:3. July 11 calls are the most active, with 36K trading, most bought for 4cents when shares were near 9.97 in flow that likely closes some of the 16cent sales made last week when shares were 70c higher. A bit later, the same broker (Hamilton on the Amex) bought 14,000 Sep 6 puts for 4 cents to open, which may indicate a customer taking some of their quick profits and entering a longer-term bearish position on Ford, which is well off last years $14 highs.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.