Bulls Want to Drive Ford Higher

Buyers jumped into Ford Motor early yesterday, betting that it still has fuel in the tank.

Option activity has been red hot in the auto maker, with more than 140,000 calls trading yesterday against fewer than 35,000 puts. The 15.50 weekly calls expiring this Friday led out of the gate and remained active all session, with contracts going for $0.08, $0.09, and $0.11. More than 18,000 of those traded in volume far above the previous open interest of 1,751 contracts, indicating new positions, according to OptionMonster's tracking systems.

Calls lock in the purchase price for the stock, which is already up 12 percent in the last month, and they can generate some nice leverage if it keeps running. Because these options expire at the end of this week, the traders are clearly banking on a quick move.

Auto Trade Revving Up
Auto Trade Revving Up   

Ford rose 3.31 percent to $15.28 yesterday. It's been on our screening systems a lot recently, with some fast and furious buying. Total option volume was almost triple its daily average yesterday.

—By CNBC Contributor Pete Najarian

Additional News: Ford to Close Australia Auto Plants in 2016

Additional Views: Trader BetsFord Will Keep Accelerating

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Options Trading School:

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Disclosures:

Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian owns F calls.

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