General Motors Options Trading: A Deep Dive into Market Sentiment

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 16 uncommon options trades for General Motors.

This isn't normal.

The overall sentiment of these big-money traders is split between 56% bullish and 43%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $270,538, and 12 are calls, for a total amount of $1,631,222.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $27.0 and $39.0 for General Motors, spanning the last three months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of General Motors stands at 9764.75, with a total volume reaching 11,183.00. 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 $27.0 to $39.0, throughout the last 30 days.

General Motors 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

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, with share up 170 basis points to 16.4%, a full percentage point ahead of Toyota. 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. GM owns over 80% of Cruise. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.

After a thorough review of the options trading surrounding General Motors, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of General Motors

• Trading volume stands at 8,397,457, with GM's price down by -1.14%, positioned at $35.84.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 46 days.

Professional Analyst Ratings for General Motors

5 market experts have recently issued ratings for this stock, with a consensus target price of $51.86.

• An analyst from Wells Fargo persists with their Underweight rating on General Motors, maintaining a target price of $27.
• An analyst from RBC Capital has decided to maintain their Outperform rating on General Motors, which currently sits at a price target of $54.
• In a cautious move, an analyst from HSBC downgraded its rating to Buy, setting a price target of $41.
• Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on General Motors with a target price of $95.
• An analyst from Mizuho has elevated its stance to Buy, setting a new price target at $42.

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.