Option trade alert on Ford (NYSE:F) put buyer

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Shares of Ford Motor Co. (NYSE: F ) are edging down so far on the day, underperforming the broad-market losses, and options action during morning trading suggests at least one investor thinks shares of the car company won't move up during the rest of the year.

By 11:02 a.m. EST, more than 6,300 in-the-money ( ITM ) January 2011 12.5 puts changed hands for $2.23 per contract, which was higher than the ask price at the time of the trade. These puts are home to current open interest of more than 100,000 contracts, suggesting the investor could have closed a short position, paying $2.23 per contract to do so for a slight loss or profit depending on the initial net credit. It's interesting that the investor could be betting F shares will be hard-pressed to rally any farther throughout the remainder of the year.

F did not announced any news today, and has not released its next earning date. The market, however, expects the report around July 22. F shares dropped more than 1%, or 13 cents, to $11.50 during midday trading.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Options

Referenced Stocks: F , ITM

Karla Yeh

Karla Yeh

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