Options action was bullish on Ford Motor today as investors bet that the automaker would rally at least 6 percent in the next four weeks.
's tracking systems detected heavy buying of the August 8 calls, which traded for $0.15 to $0.39. About 43,000 of those contracts have traded so far today, almost four times existing open interest at that strike.
CNBC/ Trading School:
Ford stock is up 6.22 percent to $7.85 this afternoon and is up 33 percent in the last month. The stock needs to climb to $8.36 for the calls purchased today to turn a profit. The next apparent catalyst that could drive the shares higher is the release of July sales figures on Monday.
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Ford has more than quadrupled since the market bottomed in March and gapped above $6.50 on July 23. Today it's working its way through a gap lower that occurred on May 22, 2008. Its next likely resistance level will probably be in the $8.50 to $8.80 range, its old high last year.
The September 7 calls were also under accumulation, trading 11,267 times for $0.80 to $1.24, although volume was far below open interest of 56,394 contracts.
Call activity in the name exceeded puts by roughly 4 to 1, reflecting the bullish sentiment.
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David Russell is a reporter and writer for .