OptionsHouse

Options Trading News

June 14, 2013  Fri 3:16 AM CT

GM: SEE CHART GET CHAIN FIND STRATEGIES
A downside position topped yesterday's option activity in General Motors even as the stock jumped.

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.
Share this article with your friends


Related Stories

GM

Put sellers see floor in General Motors

February 4, 2016

The auto maker fell yesterday despite beating earnings and revenue estimates, but traders are betting that further declines will be limited.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »