Speculators are making bullish bets on General Motors, presently in the midst of protracted contract negotiations with their chums at the United Auto Workers union.
You'd think that GM speculators and investors would press the 'sell' button with these headlines:
GM Workers Return as Talks Sour
UAW and GM: Stuck in Neutral?
GM Talks With Union Said to Be Breaking Down
Instead, GM shares are up more than 1%. More than 125,000 GM options have traded today, with much of the activity on the call side. Amazingly enough, much of the September activity is centered on the 37.5 strike! That's almost $3 above the present level of the stock. Over 30,000 GM September 37.5 calls have traded which is one heck of an aggressive play, unless you're expecting that mirth and harmony will soon abound between GM and the UAW. Seotember options are set to expire on Friday. With less than 5 days before expiration, the trade almost seems nuts.