Why Jon Najarian Bought Ford’s Call Options Today – Ford Motor Credit Company (F)

Ford Motor Company (NYSE:F) Stocks have trended lower this week after the company announced plans on Tuesday to report several significant special items in its upcoming quarterly results.

Co-founder of Market Rebellion Jon Najarian saw massive call buys during the pullback and decided to buy Ford Calls.

“There are six different call option strikes that have traded over 30,000 contracts,” Najarian said Thursday on CNBC’s “Fast Money Halftime Report.”

Najarian noted that he wasn’t sure if yesterday’s “washout” was the worst, but the “very heavy” call buying activity seemed to suggest an upside in the name.

“They were just hammering the stock,” Najarian said.

He told CNBC he bought Ford Calls during the $22 strike, expiring in March. He plans to sell call options against his position.

“I have two full cycles until March to do it and I like the benefits from here with the F-150 Lightning,” Najarian said. “I’m comfortable with the position and looking for more upside here.”

See also: Ford stock pulls back, but here’s why the bulls could soon regain control

Ford is expected to announce its fourth-quarter financial results after the market closes on Feb. 3.

Price Action F: Ford traded as low as $10.19 and as high as $25.87 over a 52-week period.

The stock was down 3.56% at $21.99 on Thursday afternoon when the market closed.

Photo: Courtesy of Ford.

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