Ford Motor Company (NYSE:F) shares have been trending lower this week after the company on Tuesday announced intentions to report several large special items during its upcoming quarterly results.
Market Rebellion co-founder Jon Najarian saw massive call buying during the pullback and decided to buy Ford calls.
"There are six different strikes of call options that have traded over 30,000 contracts," Najarian said Thursday on CNBC's "Fast Money Halftime Report."
Najarian noted that he doesn't know if the "washout" yesterday was the worst of it, but the "very heavy" call buying activity seems to suggest upside in the name.
"They were just hammering on the stock," Najarian said.
He told CNBC that he bought Ford calls at the $22 strike, expiring in March. He plans to sell upside calls against his position.
"I have two full cycles out until March to do that and I like the upside from here with the F-150 Lightning," Najarian said. "I'm comfortable with the position and I'm looking for more upside here."
See Also: Ford's Stock Pulls Back, But Here's Why Bulls May Soon Regain Control
Ford is set to announce its fourth-quarter financial results after the market closes on Feb. 3.
F Price Action: Ford has 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 Thursday afternoon at market close.
Photo: Courtesy of Ford.
