Auto stocks came into the sights of a trader who made an out of the money defined risk bearish bet in both Ford and General Motors:
Ford (F) – When the stock was $13.39, 10,000 of the May 11.75 / 10.75 put spreads were bought to open for 8 cents. The trade breaks-even on the downside at $11.67, down 13% from current levels with a max potential gain of 92 cents between $11.67 and $10.75. The stock remains in a downtrend from the multi-year highs near $18 in 2014:
General Motors (GM) – when the stock was $31.63, 10,000 of the May 30 / 28 put spreads were bought to open for .37 cents. This put spread breaks-even at $29.63, down 6% from the trading levels with gains of up to $1.63 between $29.63 and $28. Like Ford, GM remains in a well defined downtrend from its multi-year highs near $42 made in late 2013. Interestingly both stocks have for now failed just below or right at their 200 day moving averages (yellow below).