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Bulls Want to Drive Ford Higher

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- Buyers jumped into Ford (F) early Tuesday, betting that it still has fuel in the tank.

Option activity has been red hot in the automaker, with more than 140,000 calls trading Tuesday against fewer than 35,000 puts. The 15.50 Weekly calls expiring this Friday led out of the gate and remained active all session, with contracts going for 8 cents, 9 cents and 11 cents. More than 18,000 of those traded in volume far above the previous open interest of 1,751 contracts, indicating new positions, according to OptionMonster's tracking systems.

Calls lock in the purchase price for the stock, which is already up 12% in the last month, and they can generate some nice leverage if the stock keeps running. Because these options expire at the end of this week, the traders are clearly banking on a quick move.

Ford shares rose 3.31% to $15.28 Tuesday. The name has been on our screening systems a lot recently, with some fast and furious buying. Total option volume was almost triple its daily average Tuesday.

Najarian owns F calls.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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