Ford rose 16 percent yesterday after reducing its debt by $10 billion and had plenty of options activity along the way.
The automaker closed at $3.77 after trading as high as $4 during the session, its highest levels since early October. The stock was as low as $2.40 just three days ago.
OptionMonster's tracking systems showed that 186,535 Ford option contracts traded yesterday, dwarfing their 20-day average volume of 33,207. Most of this action was in the calls, as the overall put/call ratio was 0.35. The buying action exceeded open interest at several strikes, including the April 5, June 5, and June 6 calls.
Ford, as well as GM , Chrysler and other leading car makers such as Nissan , Honda and Toyota , have been facing increased pressure as recession and economic worries have cut back on consumer demand.
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Chris McKhann is an analyst and writer for OptionMonster.