Could Pre-Earnings Pessimism Fuel Additional Gains for Ford Motor Company?
Ford Motor Company (F) will drive into the earnings spotlight before the opening bell tomorrow. Historically speaking, the Detroit darling has been consistently solid, exceeding analysts’ per-share profit predictions in each of the past four quarters, according to Thomson Reuters. Nevertheless, some on the Street remain wary of the automaker which could wind up being a boon for the stock, from a contrarian standpoint. Despite depleting by a slim 6% during the most recent reporting period, short interest still accounts for nearly 276 million F shares, or 9.5% of the stock’s total available float. In fact, at the security’s average pace of trading, it would take more than three sessions for all of these pessimistic positions to unwind. On that same note, the notable accumulation of short positions could explain the significant out-of-the-money call open interest at the September 14 and 15 strikes, which harbor about 22,000 calls and 15,000 calls outstanding, respectively. By buying out-o
