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Investors buy Ford puts, buy Electronic Arts calls prior to earnings announcement
Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies. Ford Motor Co. (NYSE: F) did not announce any news this morning, but the stock is currently up 33 cents, or roughly 3%, to $11.24. By 11:04 a.m. EST, the way-out-of-the-money January 2012 5-strike puts crossed 20,000 times thanks to put buyers who paid roughly 58 cents per contract on a bearish bet that F shares could experience significant downside throughout the longer-term.
Rounding out this morning’s Sidewinder Update is Electronic Arts Inc. (NASDAQ: ERTS), which is scheduled to announce earnings figures tonight after the market closes (analysts expect earnings of 31 cents a share). The stock is currently trading up 26 cents, or 1.5%, to $17.52. By 11:05 a.m. EST, the out-of-the-money February 19 calls traded 6,500 times, and it looks like investors are preparing for the company’s earnings announcement by purchasing these options. Bullish investors who bought these calls are looking for short-term upside throughout the next 11 days until February options expiration.
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