Ford Motor (F) is making moves in the options pits today, as its shares extend their long-term volatility on the charts. This movement comes after CEO Jim Farley said the company’s cost of electric vehicles (EV) will likely be more expensive than internal combustion engine (ICE) peers until at least 2030. F remains under a steep 19% nine-month deficit, though it has managed to eke out an 8% gain for 2023. Further losses may also be on the horizon, if past is precedent.
Specifically, Ford Motor stock is trading within one standard deviation of its historically bearish 200-day trendline. Per data from Schaeffer’s Senior Quantitative Analyst Rocky White, the equity flashed five similar signals over the last three years, finishing lower 100% of the time and averaging an 8% one-month loss. The equity was last seen 4.3% lower at $12.06, so a move of similar magnitude would send the security back near its late-December lows.
As mentioned earlier, the options pits are swirling with calls. By late-afternoon, 165,000 calls have crossed the tape so far — double the average intraday amount. Most popular is the July 13 call, where new positions are being opened.
Calls have been a long-term favorite, too. At the International Securities Exchange (ISEE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), F sports a 50-day call/put volume ratio of 2.20 that sits in the 100th percentile of its annual range. Should all this bullish sentiment begin to unwind, it could add pressure to the shares Ford Motor.
For those looking to enter the security with options, premium is affordable. This is per its Schaeffer’s Volatility Index (SVI) of 36%, which sits in the low 16th percentile of its annual range.