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Your father's Oldsmobile may soon become a collector's item if the rumors are true about General Motors' (GM - 51-9/16) plans to phase out this product line. Over the past several years, GM has invested over three billion dollars in product development for the 103-year old marquee. But the stock's decline from a high of 94-5/8 in April to recent levels not seen since October 1998 have put in motion a plan for realignment. Recent remarks about the firm's upcoming restructuring plans have included verbiage stating that no division is sacred. It is assumed those words refer to the Oldsmobile line. An announcement regarding this brand's future could come during GM's conference call scheduled for this morning. Such a move would follow Daimler-Chrysler's (DCX - 43.59) elimination of the Plymouth line of vehicles.
Short interest on GM decreased by over 24 percent over the last reporting period as the bears locked in their profits. The short interest ratio currently stands at just 1.08, indicating that these remaining positions could be liquidated in just over one trading day at the current average daily volume.
In the January options series, peak open interest resides on the in-the-money January 60 put, with 18,632 contracts. The near-the-money January 50 put has 11,257 open positions.
The peak January call option is the January 60 strike, with 7,379 open positions.