Shares of General Motors Company (GM) are trading higher on the session by 1.31%, at $24.00. The stock has been rallying solidly over the past three months, forming consistent consolidation and breakout patterns.
With GM having worked off it?s overbought condition, one trader is buying upside calls in size. A short while ago the March 2013 $26.00 call traded 12,206 times, near the offer, for $1.20. Given the bid/ask spread at the time of the trade ($1.18/1.21), as well as the implied vol the contracts traded for (32%), it looks highly likely that this was a purchase.
Open interest on the strike is only 807 contracts, indicating fresh positioning. The trade has pushed overall call volume to 1.3x normal volume with 21,000 calls traded within the first hour of trading.?
30-day implied volatility is off 2% today to 32.92%; 10-day realized vol is registering 31.40%.
General Motors Company designs, builds and sells cars, trucks and automobile parts worldwide. The company also provides automotive financing services through General Motors Financial Company, Inc.