How Options Traders Are Targeting Ford
By Brandon Chapman, CMT
Hey trader,
Someone just bought downside protection on Ford through the earnings window.
The position was over 3,000 contracts at the $10 strike for May 1 expiration, and the open interest jump confirms every one of them was brand new.
Someone placed a fresh directional bet that Ford reaches $10 inside a month.
If you have been watching oil prices climb while Ford sits range-bound near $11.50, that tension is exactly what this print is pricing in. Higher gas prices do not help move cars off the lot.
Ford announces earnings at the end of April. The May 1 expiration extends just past the report.
The Block Hunter Console caught the moment open interest at $10 jumped from 359 to over 3,400 in a single session. The largest block printed at 2,200 contracts.
Ford moves about $1.60 in a typical monthly cycle, and the $10 target is $1.50 away. The math works.
The tricky part is the implied volatility. It is elevated enough that buying a naked put bleeds premium even if you are right on direction.
There is a spread structure that solves that, and the earnings date gives you a built-in rule for when to close.
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Ford's monthly ATR confirms the $10 target is within a single cycle's range.
The institution behind this print positioned through the earnings window, and the spread structure keeps your risk at 73 cents.
The Block Hunter Console flagged the moment over 3,000 new contracts opened and confirmed directional bias through fill location.
The Console lit up opportunities on KSS (375% in 13 days), PLUG (206% in 5 days), and VFC (100% in just 24 hours).
Join me Monday at 2PM where I cover the newest opportunities the console has to offer.
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