Ford Motors

Ford recently announced an issue of convertibles and immediately the stock got destroyed on heavy volume. In fact, its still selling off in heavy volume days later. A strategy utilized by many hedge funds is called convertible arbitrage where they buy the converts and sell the common. Well their shorting F all over the place. Here's the trade idea, buy some long dated calls, eventually this huge short position needs to be unwind and when it does it will be fast! I would love it if F goes to 6.50 which is long term support and then load the boat with ITM calls. The catalyst for unwinding? Ford needs to come through with some good numbers, how, when, or if that happens is another story.