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Tony Zhang Sees More Upside to GM, Lays Out Bullish Options Trade

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Craig Jones
·1 min read
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On CNBC's "Options Action," Tony Zhang suggested a bullish options strategy in General Motors Company (NYSE: GM). He sees the stock as a play for electric vechicles and thinks there is more room on the upside.

General Motors has just broken above a significant resistance point of $46.5 and it has outperformed the S&P 500. Zhang thinks the market is shifting in its views about General Motors and its future. He expects to see a lot more upside for the stock.

To make a bullish bet, Zhang wants to sell the February $49 put for $2.55. This allows him to purchase the stock at around a 5% discount if the stock trades below $49. The trade breaks even at $46.45, or around 7% below the closing price on Friday.

 

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