Investors don’t seem revved up about Ford’s earnings. The automaker is due to report earnings tomorrow morning and anaysts expect to see a decline in earnings due to poor European sales. 27,800 Weekly at-the-money 9 puts traded on the stock ahead of the news. The flow includes a multi-exchange sweep of 5,000 contracts for 14 cents this morning. Data indicate an opening buyer. The top two trades were initiated separetely, but might be part of a bearish risk-reversal on Ford. 10,000 Dec 8 puts traded for 34 cents while 10,000 Jan 10 calls at 35 cents. Both blocks traded on ISE — calls were sold, puts bought, according to ISEE. The negative sentiment in Ford might be related to its recent track record. Shares have moved lower after each of the past four quarterly reports for an average daily loss of 3.2 percent. Shares lost 2.3 percent on 4/27 when the company last reported and are down an additional 22.2 percent since that time. The stock is down 17 cents to $9.00 roday and falling to 2-year lows ahead of the results.
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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.