Decoding General Motors's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on General Motors GM.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with GM, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 23 uncommon options trades for General Motors.

This isn't normal.

The overall sentiment of these big-money traders is split between 52% bullish and 34%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $335,420, and 17 are calls, for a total amount of $2,354,906.

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What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $25.0 to $60.0 for General Motors during the past quarter.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for General Motors's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of General Motors's whale trades within a strike price range from $25.0 to $60.0 in the last 30 days.

General Motors Option Activity Analysis: Last 30 Days

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.

Having examined the options trading patterns of General Motors, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of General Motors

• Currently trading with a volume of 12,148,134, the GM's price is down by -0.52%, now at $49.64.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 5 days.

What The Experts Say On General Motors

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $52.333333333333336.

• An analyst from UBS persists with their Buy rating on General Motors, maintaining a target price of $61.
• Maintaining their stance, an analyst from Wells Fargo continues to hold a Underweight rating for General Motors, targeting a price of $32.
• An analyst from UBS has decided to maintain their Buy rating on General Motors, which currently sits at a price target of $64.

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.