Ford (F) Options Selling Strategies: Maximizing Premium on a Cheap Stock
The Appeal of Ford Options
Ford is the gateway drug of options trading. At roughly $11 per share, one covered call contract requires just $1,100 in stock. The premiums are small in dollar terms but surprisingly decent on a percentage basis. IV runs 30-38%, well above the market average, driven by cyclical auto industry dynamics, EV transition uncertainty, and Ford's leveraged balance sheet.
For new options traders or small accounts, Ford is where you learn the mechanics without risking your retirement.
Premium Breakdown
Here is what monthly covered calls look like on Ford:
| Strike | Delta | Premium | % Yield (Monthly) | Annualized |
Dollar amounts are small. $28 per contract on the $11.50 call is not life-changing. But the percentage yields are competitive with much more expensive stocks. If you run 10 contracts ($11,000 in stock), you collect $280 monthly. Over a year, that is $3,360 on an $11,000 position, a 30% yield before any stock appreciation.
Strategy 1: Aggressive Covered Calls
Ford is a stock that goes nowhere for long stretches. Between 2022 and 2025, it has traded in roughly the $10-14 range. This makes it ideal for at-the-money or near-the-money covered calls.
Sell the $11.50 call monthly. If Ford stays flat (its most common behavior), you collect $0.28 per month. If it rallies through $11.50, you are called away with a modest gain plus the premium. Buy back in on the next dip below $11.
The key insight: Ford's lack of sustained upside means you rarely miss a big move by capping gains. The premium more than compensates for the occasional assignment.
Strategy 2: The Wheel on Ford
Ford is arguably the best cheap stock for running the wheel strategy.
Step 1: Sell the $10.50 cash-secured put for $0.22. You need $1,050 in cash.
Step 2: If assigned, you own Ford at an effective price of $10.28. Start selling $11.50 covered calls.
Step 3: If called away at $11.50, you profit $1.22 per share ($1.22 stock gain + $0.28 call premium - wait, you already collected the put premium too). Total cycle profit: approximately $1.72 per share on $10.50 in capital, or 16.4% per wheel cycle.
Wheel cycles on Ford typically complete in 2-4 months, putting the annualized return in the 50-80% range during favorable conditions. Of course, this assumes the stock cooperates.
Strategy 3: Selling Weekly Options
Ford has active weekly options with tight bid-ask spreads. The 5-DTE $11.50 call fetches about $0.10-0.14, and you can sell it every week.
Weekly income math: $0.12 x 52 weeks = $6.24 per share annually. On an $11 stock, that is a 57% annualized yield. Commissions eat into this on small positions, but the raw numbers are compelling.
The risk: a sudden rally through your strike gives you no time to roll. Weekly options expire quickly, so you must be comfortable with frequent assignment.
Dividend Bonus
Ford currently pays around $0.15 per quarter ($0.60 annually), giving a yield near 5.5%. Combined with options income, total yield can exceed 35% annually. Watch for early assignment risk on in-the-money calls around ex-dividend dates, as Ford's dividend is large relative to the stock price.
What to Watch
OptionsPilot's covered call finder is particularly useful for Ford because it shows the premium yield per dollar of capital, helping you compare Ford's returns against other cheap stocks like CCL, SNAP, or T on an apples-to-apples basis.