Auto Stock Eyes 7th-Straight Loss Despite New EV Investment

Options traders have been more bearish than usual

Digital Content Manager
Jan 25, 2022 at 3:12 PM
facebook X logo linkedin


General Motors Company (NYSE:GM) is down 0.8% to trade at $52.22 at last check, despite the automaker announcing plans to invest $7 billion in Michigan, most of which will be used to increase production of electric vehicle (EV) pickups. This move will ramp up competition with Ford Motor (F), though those eyeing the EV sector will still also be keeping tabs on Tesla's (TSLA) plan to to sell over 1 million electric vehicles in 2022.

Digging deeper, General Motors stock has pulled back dramatically from its Jan. 5, all-time high of $67.21, and is now pacing for its seventh-straight daily loss. The security is also trading at its lowest level since September, and has lost long-time support from its 320-day moving average. Over the last nine months, GM has shed 11.4%.

GM 320 Day 2

The brokerage bunch remains bullish towards the equity, however, with eight of the 10 analysts in question carrying a "buy" or better rating, while two say "hold." What's more, the 12-month consensus price target of $77.02 is a 47.3% premium to the security's current levels. 

Meanwhile, options traders have been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GM's 50-day put/call volume ratio of 0.30 sits higher than 89% of readings from the past year. This means that while calls are still outnumbering puts on an overall basis, puts are getting picked up at faster-than-usual clip. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI