Today we are taking a look at the confusing world of the Long Put and Long Call Options Trading in high Volume Heavyweight Ford Motors Stock.

So if you are to calculate the intrest in Ford Motor company options
traders first lets start by analyzing the intrinsic value of options
underwriting, covered calls and covered puts options trading. First off
here is the latest quote for Ford Motor Company before the Memorial Day
Long Weekend.

Price Range 11.62 - 12.08 dollars per share
Market Capital 39.96 Billion Dollars
P/E 7.73
Earnings per share of 1.52
Average Volume 78-138 million shares traded.

Ok now that we have the quote out of the way lets analyze the intrinsic
value of the out of money heavy options levels that keep ford one of the
most volitile and actively traded stocks on the exchange. Options
trading is very risky and one of the most popular trading instrument for
ford motor company since the potential for high volume movements in
these dirivitives written on the underlying Ford stock can push the
stock price in a big way when or if they run into the strike price
realizing a potential big gain or loss. The reason we look at ford is
its the most popular as the options market is much different from the
stock market in the fact that their no always " Equity " worthy being
esentially worth nothing outside the " In the money " trading but can
suddenly be worth market value at any given time when they are exercised
into money or sold to open or bought to open with covered options writing.

Amazing enought the dirivitives market is 700 times the world economy of
" Potential " or " Unrealized " market capital. Ford is intresting in
the fact that it always has enormous bets in the options market
currently here is the break down.

$270,438,110 dollars (approx) out of the money options Puts
$501,984,610 dollars (approx) out of the money options Calls

We know that the fundementals of any stock is that it takes 3x the
buying power or buying cost to raise a stock to a level that 1x selling
power reduces a stock in value. What does this mean? Well basically
this would put ( excuse the pun ) the Bears with a moderate advantage
over the bulls with a bearish outlook in the options market anyway that
fords stock price will go down in the near future. This is looking only
at Junes potential futures market. So the immediate outlook would put
the " out of the money " unrealized potential value approximate 60% sell
and 40% buys meaning that the overall outlook would be bearish as far as
the options market is concerned. Looking more closely at the options
puts for june 19th would indicate that a move into the 11 dollar trading
range could put a enormous move in ford in a bearish trend if these out
of the money puts became in the money which is potentially possible and
if profits are realized and money taken off the table this could again
put a big bearish move into the underlying security Ford.

The 82000 put level @ 11 dollar puts for June represents a enormous
unrealized profit or loss of $90,200,000 dollars which would put a 3X
leverage against the underlying security Ford would would drag Ford down
if covered within the next 2 weeks. This type of heavy out of the money
put options can suddenly be realized causing a significant liquidity
effect on the stock.

Wheres the smart money? Out of the stock market.