Looking At General Motors's Recent Unusual Options Activity

Deep-pocketed investors have adopted a bearish approach towards General Motors GM, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in GM usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for General Motors. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 25% leaning bullish and 62% bearish. Among these notable options, 2 are puts, totaling $296,792, and 6 are calls, amounting to $400,409.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $40.0 and $46.5 for General Motors, spanning the last three months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for General Motors's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across General Motors's significant trades, within a strike price range of $40.0 to $46.5, over the past month.

General Motors Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

About General Motors

General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its U.S. market share leader crown in 2022, after losing it to Toyota due to the chip shortage in 2021. 2023's share was 16.5%. GM's Cruise autonomous vehicle arm has previously done driverless geofenced AV robotaxi services in San Francisco and other cities but stopped in late 2023 after an accident. It should restart in at least one city in 2024. GM owns over 80% of Cruise. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.

After a thorough review of the options trading surrounding General Motors, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of General Motors

• Trading volume stands at 4,104,952, with GM's price down by -0.37%, positioned at $45.6.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 26 days.

Professional Analyst Ratings for General Motors

In the last month, 3 experts released ratings on this stock with an average target price of $56.0.

• Consistent in their evaluation, an analyst from UBS keeps a Buy rating on General Motors with a target price of $61.
• An analyst from B of A Securities has decided to maintain their Buy rating on General Motors, which currently sits at a price target of $75.
• Maintaining their stance, an analyst from Wells Fargo continues to hold a Underweight rating for General Motors, targeting a price of $32.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for General Motors, Benzinga Pro gives you real-time options trades alerts.