General Motors hit a 52-week high yesterday, and one trader is expecting the stock to make a sharp move higher or lower in the first half of next year.
A trader bought 3,500 June 24 puts for the ask price of $1.18, optionMONSTER systems show. The volume was about 10 times the strike's open interest at the beginning of the day, so this is clearly a new position.
The largest print of GM stock changed hands less than a minute later, as 84,000 shares were bought for $27.70. Combined with the puts, these shares would create a delta-neutral position that is looking for increased volatility in the stock and/or a sharp move in either direction. (See our Education section)
GM finished the day down fractionally at $27.62 after hitting a 52-week intraday high of $27.95 earlier in the session. The auto maker's shares broke through resistance at $26 last week and have been trending higher from the 52-week low of $18.72 set in late July.
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