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Options Action: Ford Motor

Ford is scheduled to report quarterly earnings ahead of Friday's opening bell.

Typically, the stock only moves up to 3.8 percent after earnings, said Mike Khouw of Cantor Fitzgerald. Things could be different with this release, however, as the options markets suggests a move of up to 4.3 percent.


Ford shares are up 88 percent since end June 2010 and although it's not trading at an "unreasonable" multiple, Khouw thinks it sets up nicely for a stock replacement strategy.

***MIKE'S F TRADE***
Buy Mar. 19 calls at 60 cents

To learn more about this trade, check out the video.

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Trader disclosure: On Jan. 26, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU). Karen Finerman owns (AAPL), (BAC), (BP), (C), (GLW), (GOOG), (HPQ) and (MSFT). Karen Finerman owns (BAC) leaps. Karen Finerman owns (JPM) and (JPM) leaps. Pete Najarian owns (BAC) call spreads. Pete Najarian owns (C). Pete Najarian owns (F) calls and bonds. Pete Najarian owns (GE). Pete Najarian owns (JPM) call spreads. Pete Najarian owns (MS). Pete Najarian owns (TCK). Pete Najarian owns (YHOO) and (YHOO) calls. Josh Brown owns (BAC), (GE), (JPM), (QCOM), (NVDA) and (GLD).

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KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (AAPL)
Finerman's firm owns (BBY)
Finerman's firm owns (BP)
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (TGT)
Finerman's firm owns (WMT)

GUY ADAMI
Adami's wife works for (MRK)

BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MCP)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Are Long The Euro
Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Are Short (XLF)

JOSH BROWN
Brown owns (AAPL) for clients
Brown owns (AMZN) for clients
Brown owns (AXP) for clients
Brown owns (BAC) for clients
Brown owns (BP) for clients
Brown owns (C) for clients
Brown owns (C) for clients
Brown owns (CSCO) for clients
Brown owns (F) for clients
Brown owns (GE) for clients
Brown owns (GDXJ) for clients
Brown owns (GLD) for clients
Brown owns (GOOG) for clients
Brown owns (HPQ) for clients
Brown owns (IBM) for clients
Brown owns (JNJ) for clients
Brown owns (JPM) for clients
Brown owns (MCD) for clients
Brown owns (MOS) for clients
Brown owns (MSFT) for clients
Brown owns (MS) for clients
Brown owns (NVDA) for clients
Brown owns (QCOM) for clients
Brown owns (T) for clients
Brown owns (UNH) for clients
Brown owns (WFC) for clients

ANDY BUSCH
Busch has no disclosures

MIKE KHOUW
Cantor Fitzgerald & Co is a market maker in (AMZN)
Cantor Fitzgerald & Co is a market maker in (F)

DAVID RIEDEL
Riedel has no disclosures

COLIN GILLIS
BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from (MSFT)
No disclosures on (AMZN)

CNBC.com with wires.

Symbol
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F
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