GM Forecast + Trading Strategies


Bullish Case: GM's robust entry into the EV market with solid government support, coupled with growth in EV sales, sets up GM for potential bullish momentum.


Bearish Case: Recent GM executive resignation and dependency on high-priced EVs may hamper growth, with high market volatility reflecting uncertainty around GM’s execution capabilities.


Potential Outcomes: 65% chance of bullish growth from EV initiatives and government support, 25% probability of disruptions from legal and executive challenges, and 10% risk from market and competitive pressures.


Trading Oracle: Favor bullish debit spreads expiring in 14 days (e.g., buy $52 calls, sell $53 calls). Target short-term upside exploiting current options volatility and implied edge. Hold for 1-2 weeks aiming for 10% return on risk. This approach balances edge, high reward-to-risk ratio, and alpha.


July 21, 2024


General Motors Forecast

GM      General Motors











Correlated Assets

Assets that tend to move strongly with GM



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.94)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.54)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)



Uncorrelated Assets

Assets with little price relationship to GM



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.54)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.94)



Anticorrelated Assets

Assets that tend to move strongly against GM



ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (0.94)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.54)


VFC Forecast + Options Trading Strategies   VFC  VF (-0.64)


LI Forecast + Options Trading Strategies   LI  Li Auto (-0.71)





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