What the Options Market Tells Us About General Motors

High-rolling investors have positioned themselves bearish on General Motors GM, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in GM often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 8 options trades for General Motors. This is not a typical pattern.

The sentiment among these major traders is split, with 25% bullish and 62% bearish. Among all the options we identified, there was one put, amounting to $49,350, and 7 calls, totaling $387,896.

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 $46.5 and $50.0 for General Motors, spanning the last three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of General Motors stands at 2288.0, with a total volume reaching 23,103.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in General Motors, situated within the strike price corridor from $46.5 to $50.0, throughout the last 30 days.

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.

Following our analysis of the options activities associated with General Motors, we pivot to a closer look at the company's own performance.

General Motors's Current Market Status

• With a volume of 1,407,440, the price of GM is up 1.76% at $46.38.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 25 days.

Professional Analyst Ratings for General Motors

3 market experts have recently issued ratings for this stock, with a consensus 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 Wells Fargo has decided to maintain their Underweight rating on General Motors, which currently sits at a price target of $32.
• An analyst from B of A Securities persists with their Buy rating on General Motors, maintaining a target price of $75.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for General Motors with Benzinga Pro for real-time alerts.