General Motors Company (GM) $25.45 -1.13%
GM loses 30 cents to $25.44 and it looks like a Jan 30 – 40 (1X4) call ratio spread is initiated on the automaker for 61 cents, 7000X. It might be a position adjustment. Both contracts are OTM with sufficient open interest to cover. Or, it might be opening and a bet that GM will rally to more than $30 (~17.9%), but not significantly beyond $40 (~57.2%) through the Jan 2013 expiration. Shares are on a four-day losing skid, but still up more than 25 percent year-to-date.
Category: All Stocks, Automobiles & Parts, Large Cap Stocks
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About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.
