A moneyed titan appears to be going all-in on a pessimistic bet against Ford Motor (NYSE:F), an occurrence that demands our close attention. The sheer size of this bet hints at a potential iceberg ahead for the automotive giant.
Who’s the player? It’s anybody’s guess. But what’s crystal clear is this: when F takes a blow like this, it’s an alarm bell ringing at the stock market’s version of Fort Knox.
Let’s shed some light on this abnormality.
The majority of these whales have a bearish outlook, with a whopping 66% leaning that way, leaving the remaining 33% swimming in bullish currents.
We dove deep into the options pool and found that eight of these options are puts, totalling a cool $1,049,313, and 13 are calls with a total amount of $781,438.
Price target, anyone?
Based on the contract Volume and Open Interest, it seems our whales have been eyeing a price range of $5.0 to $20.0 for Ford Motor for the past quarter.
Volume & Open Interest: A Peek under the Hood
Analyzing volume and open interest is akin to having a superpower in options trading. With this knowledge, one can gauge the liquidity and interest for a given strike price in Ford Motor’s options. The chart below gives you a bird’s eye view of how volume and open interest have evolved for calls and puts over the last month, within a strike price range of $5.0 to $20.0.
Ford Motor Option Volume and Open Interest: Last 30-Day Snapshot Biggest Options Sighted:
- (Symbol: F) PUT/SWEEP/BULLISH/Exp:07/28/23/Strike: $15.00/Trade: $296.1K/OI: 12.3K/Volume: 6.9K
- (Symbol: F) PUT/TRADE/BEARISH/Exp:12/19/25/Strike: $12.00/Trade: $258.0K/OI: 21.5K/Volume: 1.4K
- (Symbol: F) PUT/TRADE/BEARISH/Exp:12/19/25/Strike: $5.00/Trade: $129.9K/OI: 11.7K/Volume: 497
- (Symbol: F) PUT/SWEEP/BULLISH/Exp:07/28/23/Strike: $15.00/Trade: $129.0K/OI: 12.3K/Volume: 10.2K
- (Symbol: F) CALL/SWEEP/BEARISH/Exp:01/17/25/Strike: $9.35/Trade: $121.0K/OI: 3.0K/Volume: 0
What’s the Verdict on Ford?
With a trading volume of 42,755,942, the F has lost 1.42% to close at $14.97. RSI indicators point to the stock being on the verge of the overbought territory. The company is due to release its earnings in 13 days.
Expert Speak:
Despite the bearish undertones, most expert analyses continue to be optimistic:
- Morgan Stanley: Overweight, Target – $16
- Jefferies: Buy, Target – $17
- Citigroup: Buy, Target – $17
- Barclays: Equal-Weight, Target – $14
- Wells Fargo: Underweight, Target – $11
Remember, options are a treacherous territory compared to straightforward stock trading; the potential for profits is high, but so is the risk factor. A wise trader educates themselves, scales trades thoughtfully, uses multiple indicators, and keeps their eyes peeled on market movements.
