What’s Behind a Huge GM Call Sale

A huge call sale leads the early option action in General Motors as it comes off multi-year highs reached this morning.

optionMONSTER systems show that a single trade in the January 42 calls dominates heavy activity in the auto maker, with 30,000 of those contracts sold for $0.61. With volume that is almost 4 times the previous open interest at that strike, this is clearly a new position.

The calls weren’t tied to any trading in the underlying shares identified by our scanners today, so it could be naked selling. That would have an initial bearish bias and significant risk if GM runs above $42.

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