General Motors Company (GM) Bear Places $670,000 Bet

One General Motors Company (GM) trader bought a large block of puts

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Published on Mar 11, 2015 at 2:47 PM
Updated on Apr 20, 2015 at 5:32 PM

Puts are crossing at a faster-than-usual rate today in General Motors Company's (NYSE:GM) options pits. The most popular option is the January 2016 30-strike put, thanks to a 6,350-contract block that was bought to open earlier at $1.05 per contract, for a total cash outlay of nearly $670,000 (premium paid * number of contracts * 100 shares per contract). This is the most the speculator stands to lose if GM settles above $30 at January 2016 options expiration.

Prior to today, calls have been popular in the security's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open nearly three GM calls for each put during the past 10 weeks. What's more, the resultant 50-day call/put volume ratio of 2.94 outranks 86% of all such readings from the past year.

Similarly, analysts have their feet planted in the bulls' neck of the woods. Eight covering brokerage firms have doled out "strong buy" ratings, with one calling GM a "buy," and four others handing out "hold" recommendations.

General Motors Company (NYSE:GM) is 1.1% higher today at $37.96, continuing its 2015 success. Year-to-date, the shares have added close to 9%.


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