Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

How To Make Money With Lower Risk On Ford Motor Company (F) Stock?

Ford Motor Company (NYSE:F) had an eventful year so far with share prices going up by around 6.5% so far in 2015. Meanwhile, many option activities were happening in Ford Motor Company (NYSE:F) stock on Friday. Ford Motor Company (NYSE:F) stock traded three times average daily call volumes on Friday. Option Action Traders Michael Khouw and Brian Stutland talked on CNBC about why there was tremendous option activity on Ford Motor Company (NYSE:F) stock.

Ford F

Khouw pointed out that there was more than three times average call volume on Friday for Ford Motor Company (NYSE:F). He said that it could be due to a single institutional trade in June.

“Somebody traded the June $17, $18, $19 call butterfly. Sounds like a mouthful. Almost 14000 times. What does that mean? They bought the June $17 call just under 14000 times, they sold the $18 almost 28000 times and then they bought the $19 strike calls also about 14000 times. The interesting thing about this trade is that you could put the whole package on for less than a dime,” Khouw said.

He pointed out that the entire option costs less than a dime for the trader. He said that traditionally butterfly trades are like threading the needles, more riskier, but he feels that this particular butterfly trade on Ford Motor Company (NYSE:F) is a lot less riskier.

Stutland said that this trade on Ford Motor Company (NYSE:F) makes a lot of sense. He mentioned that if the Ford Motor Company (NYSE:F) stock could break through $17 mark, it could easily get to the $18 mark, which is why the strike was set at $18. He also said that this trade depends a lot of the volatility of the Ford Motor Company (NYSE:F) stock. He feels that this is the only possible trade with lesser risk at the moment on Ford Motor Company (NYSE:F) stock.

Disclosure: None

I just made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!