General Motors Options Trading: Analyzing Market Sentiment

Recent trading patterns indicate that financial giants are adopting a notably bearish stance towards General Motors (NYSE: GM). Our deep dive into the options history of General Motors uncovered a total of 17 unusual trades, offering insights into market sentiment and trader behavior.

Upon further analysis, we observed an interesting balance in trader outlooks: 47% of traders demonstrated bullish tendencies, while 52% exhibited a bearish sentiment. Within the trades we identified, 6 were put options valued at approximately $533,620, and 11 were call options, with a total value reaching about $1,478,311.

Projected Price Targets

Considering both the volume and open interest associated with these contracts, it seems that institutional investors, often referred to as 'whales', have been concentrating their efforts on targeting a price range of $48.00 to $57.50 for General Motors over the past three months.

Analyzing Volume and Open Interest

Volume and open interest analyses play a strategic role in options trading, helping to reveal liquidity and the level of investor interest surrounding General Motors' options at specified strike prices. The following data will illustrate the trends in volume and open interest for both calls and puts, connected to General Motors' significant trades, considering a strike price range of $48.00 to $57.50 over the previous 30 days.

General Motors 30-Day Option Volume and Interest Snapshot

Significant Options Trades Detected:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
GM	CALL	SWEEP	BULLISH	11/15/24	$1.84	$1.78	$1.84	$52.50	$546.4K	3.1K	3.0K
GM	CALL	SWEEP	BULLISH	11/01/24	$2.86	$2.86	$2.86	$50.00	$286.0K	7.4K	1.0K
GM	PUT	SWEEP	BEARISH	03/21/25	$1.98	$1.92	$1.92	$48.00	$192.0K	378	1.0K
GM	CALL	SWEEP	BULLISH	03/21/25	$7.35	$7.25	$7.35	$48.00	$178.6K	513	244
GM	PUT	SWEEP	BEARISH	01/17/25	$3.85	$3.8	$3.85	$55.00	$150.5K	1.4K	506

About General Motors

General Motors Co. was formed in July 2009, following the bankruptcy of General Motors Corp. It operates eight brands across four segments: GM North America, GM International, Cruise, and GM Financial. The company has successfully regained its position as the leader in U.S. market share as of 2022, after previously losing that title to Toyota due to supply chain issues in 2021. The current share stands at 16.5% for 2023. GM’s Cruise division has been experimenting with autonomous vehicle technology, although it faced challenges with its driverless services in 2023. By 2024, GM has resumed some services elsewhere despite not returning to California yet. Furthermore, GM Financial serves as the company’s dedicated finance division, launched back in October 2010 through the acquisition of AmeriCredit.

After reviewing the options activities linked to General Motors, we will now turn our attention to the company's market performance.

General Motors's Current Market Status

• The trading volume stands at 3,303,187, with GM’s stock price dipping by 0.44% to $52.49.
• Current Relative Strength Index (RSI) readings suggest the stock is neutrally balanced between overbought and oversold territories.
• Next earnings report is anticipated in 95 days.

What Analysts Are Saying About General Motors

Five different market analysts have provided ratings for GM, showing a consensus target price of $58.4.

Unusual Options Activity Detected: Insights from Smart Money

Monitoring unusual options trades can help identify potential market movers early. A JP Morgan analyst has reaffirmed their Overweight rating for General Motors with a target price of $70. Conversely, a Wells Fargo analyst maintains an Underweight rating with a $38 target. Meanwhile, Wedbush keeps an Outperform rating with a $60 target, while Barclays echoes JP Morgan’s optimism with another $70 target. In a more cautious stance, RBC Capital downgraded its position to Outperform, targeting a price of $54.

Options trading presents higher risks compared to traditional stock trading, but it also offers significant profit potential. Dedicated options traders manage these risks by continually educating themselves, carefully entering and exiting trades, and monitoring more than one market indicator closely.

For those looking to stay informed about the latest options activities for General Motors, various platforms offer real-time alerts to track trading movements.

GeneralMotors, Trading, Options