OptionsHouse

Options Trading News

January 3, 2013  Thu 10:55 AM CT

GM: SEE CHART GET CHAIN FIND STRATEGIES
General Motors is attracting a large bullish trade as the auto maker hits new 52-week highs today.

optionMONSTER's Heat Seeker system shows that a trader sold 9,238 January 30 calls for the bid price of $0.59 against open interest of more than 83,000. At the same time, he or she bought 9,238 March 32 calls for $0.65 against open interest at that strike of just 778, so that is a new position.

This could be a new diagonal spread but, given the trade data and the fact that there are just two weeks left before the January option expiration, it is more likely a roll. That suggests the trader remains bullish and wants to buy more time for the stock to continue climbing. (See our Education section)

GM is up 3.59 percent to $30.17 in midday trading, its highest level since July 2011. Shares were below $19 at the end of July.
Share this article with your friends


Related Stories

GM

Trades show caution in General Motors

May 19, 2016

The auto maker reported bullish results in April and is up 6 percent in the last three months, but traders are looking at a possible pullback.

OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »