What's behind heavy GM put buying
Chris McKhann | [email protected]
The biggest GM trade came in the June 33.50 puts when 10,000 contracts were bought for the ask price or $0.47, according to optionMONSTER's Depth Charge tracking system. There was no open interest in the strike before the trade appeared, showing that this is a new position.
The puts were not tied to any trading in the underlying shares identified by our systems yesterday. The trade could be an outright bearish play or a protective hedge on existing long shares. (See our Education section)
GM gained 3.14 percent on the day to close at $34.50, but it was below the $33.50 strike price when the options traded in the morning. The auto maker hit a high of $35.49 last week and was down below $28 two months ago.