Ford Options' Buyers See More Fuel in Tank

By Pete Najarian, co-founder of OptionMonster

DETROIT ( OptionMonster) -- Ford Motor ( F) moved progressively higher Thursday and option traders are betting it has more fuel in the tank.

The automaker saw 220,398 calls change hands vs. 58,708 puts, according to OptionMonster's real-time tracking systems. Institution-sized buying included some 50,000 February 21 calls that went for 16 cents, including a single block of 36,862 contracts.

The January 19s were also purchased but in volume less than open interest so that could be panic buying on the part of short-sellers.

The company has been gaining traction like one of its big-load pickups, with December another strong month of sales for the F-150, the Fusion, and the Edge. Shares fell 0.16% to $18.68 Thursday but hit a new nine-year high of $18.97 before pulling back.

The stock is up 37% in the last three months but would need to rise another 13% in the next five weeks for the calls purchased Thursday to turn a profit.

Najarian owns Ford calls and bonds.

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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