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.