BY ANDREW GIOVINAZZI 

September 2, 2023 

Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.

Have a stock YOU want us to review? Email my team here. – Mark

Hey Traders,

The venerable General Motors Corp (Ticker:GM) is getting added this week to the Pit Report.  Now normally this would fall under the Frank and Griff category in Pod 4 of the Pro ATMs but I am going to do a little vol spin here.  GM realized vol is falling off the map as activity has cooled bigly in here.

Option prices are still a bit elevated.  

What to do, what to do?

Higher IV makes for good 1 x 2 put spreads

GM has been in the ashcan lately on the UAW strike possibility and new car sales slowing down.  With pricing dropping on cars that should squeeze GM’s margins.  With GM prices down so much I like the idea of selling 2 puts out of the money and buying 1 put in the money.  That way if there is more continuation down, the trade should pay well.

With the higher vol I don’t really want to buy calls if the UAW news drags on so a good sideways trade could work well here.  I cover this trade in more detail with the Pro members in the third Area of Trading Mastery.

To your trading success,

AG