General Motors Stock Surges, Options Traders Increase Their Bets

When General Motors Co GM announced on Wednesday it was partnering with Lockheed Martin Corp LMT to build lunar vehicles for astronauts to travel on the moon, GM's stock popped over a resistance level at $56.88 that had been holding it down since May 11.

GM stock is showing continuing momentum Thursday and gapped up over 3% on news the company has resolved its semiconductor shortage and plans to restart production at five of its plants beginning next week.

Right after the opening bell on Thursday, options traders began to place bullish bets on General Motors stock, and by mid-morning the dollar amounts traders were putting into calls was steadily increasing. In total, institutions purchased over $1.35 million in GM call options.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The General Motors Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

At 9:36 a.m. Thursday, a trader executed a call sweep near the ask of 200 General Motors options with a strike price of $60 expiring on June 18. The trade represented a $33,200 bullish bet for which the trader paid $1.66 per option contract.

At 9:39 a.m., a trader executed a call sweep near the ask of 391 General Motors options with a strike price of $60 expiring on June 18. The trade represented a $73,508 bullish bet for which the trader paid $1.88 per option contract.

At 9:43 a.m., a trader executed a call sweep near the ask of 320 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $35,200 bullish bet for which the trader paid $1.10 per option contract.

At 9:44 a.m., a trader executed a call sweep near the ask of 343 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $39,102 bullish bet for which the trader paid $1.14 per option contract.

At 9:50 a.m., a trader executed a call sweep near the ask of 279 General Motors options with a strike price of $63 expiring on June 25. The trade represented a $33,480 bullish bet for which the trader paid $1.20 per option contract.

At 9:51 a.m., a trader executed a call sweep near the ask of 338 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $39,208 bullish bet for which the trader paid $1.16 per option contract.

At 9:52 a.m., a trader executed a call sweep near the ask of 370 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $41,810 bullish bet for which the trader paid $1.13 per option contract.

At 9:55 a.m., a trader executed a call sweep near the ask of 250 General Motors options with a strike price of $70 expiring on Sept. 17. The trade represented a $28,500 bullish bet for which the trader paid $1.44 per option contract.

At 9:56 a.m., a trader executed a call sweep near the ask of 1,650 General Motors options with a strike price of $62.50 expiring on July 16. The trade represented a $351,450 bullish bet for which the trader paid $2.13 per option contract.

At 9:57 a.m., a trader executed a call sweep near the ask of 1,465 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $187,520 bullish bet for which the trader paid $1.28 per option contract.

At 9:57 a.m., a trader executed a call sweep near the ask of 451 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $57,728 bullish bet for which the trader paid $1.28 per option contract.

At 9:59 a.m., a trader executed a call sweep near the ask of 721 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $93,009 bullish bet for which the trader paid $1.29 per option contract.

At 10 a.m., a trader executed a call sweep near the ask of 499 General Motors options with a strike price of $62.50 expiring on June 18. The trade represented a $64,371 bullish bet for which the trader paid $1.20 per option contract.

At 10 a.m., a trader executed a call sweep near the ask of 569 General Motors options with a strike price of $62.50 expiring on Sept. 17. The trade represented a $216,220 bullish bet for which the trader paid $3.80 per option contract.

At 11:04 a.m., a trader executed a call sweep near the ask of 508 General Motors options with a strike price of $65 expiring on July 16. The trade represented a $61,976 bullish bet for which the trader paid $1.22 per option contract.

GM Price Action: Shares of General Motors were trading 2.83% higher at $59.68 at last check Thursday.