Options Traders Zoom Towards General Motors Stock After Earnings

The company reported earnings earlier today

Deputy Editor
Jan 31, 2023 at 3:10 PM
facebook X logo linkedin


General Motors (NYSE:GM) is seeing a surge in post-earning options activity, with more than 150,000 calls and 78,000 puts crossing the tape so far today. The 227,000 total options accounts for triple the average intraday amount, with the most activity taking place at the weekly 2/3 36-strike call -- where new positions are being opened.

The automotive manufacturer reported fourth-quarter earnings and revenue that bested Wall Street's expectations, and forecasted a better-than-expected 2023 despite narrowing profit margins. The results following a period of normalization in the sector, after several years of record-low inventories. 

General Motors stock is 7.8% higher this afternoon, last seen trading at $39.11, and on track to nab its highest close since early December. Though it still sports a 27.8% year-over-year deficit, GM is on track to kick 2023 on the right foot, as it looks to add nearly 8% in January.

Today's preference for bullish bets is bucking a longer-term trend, as puts have been unusually popular. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.77 that stands higher than 96% of annual reading, implying short-term options traders have rarely favored puts more. 

Further, GM sports a 50-day put/call volume ratio that stands in the slightly elevated 78th percentile of its 12-month range, according to data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

 

 

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