General Motors options pits have seen triple the average amount of volume today
General Motors (NYSE:GM) is seeing a surge in post-earning options activity, with more than 150,000 calls and 78,000 puts crossing the tape so far today. The 227,000 total options accounts for triple the average intraday amount, with the most activity taking place at the weekly 2/3 36-strike call — where new positions are being opened.
The automotive manufacturer reported fourth-quarter earnings and revenue that bested Wall Street’s expectations, and forecasted a better-than-expected 2023 despite narrowing profit margins. The results following a period of normalization in the sector, after several years of record-low inventories.
General Motors stock is 7.8% higher this afternoon, last seen trading at $39.11, and on track to nab its highest close since early December. Though it still sports a 27.8% year-over-year deficit, GM is on track to kick 2023 on the right foot, as it looks to add nearly 8% in January.
Today’s preference for bullish bets is bucking a longer-term trend, as puts have been unusually popular. This is per the equity’s Schaeffer’s put/call open interest ratio (SOIR) of 0.77 that stands higher than 96% of annual reading, implying short-term options traders have rarely favored puts more.
Further, GM sports a 50-day put/call volume ratio that stands in the slightly elevated 78th percentile of its 12-month range, according to data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).
Image and article originally from www.schaeffersresearch.com. Read the original article here.