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Could These G.M. Puts Go up 50% This Week?

Fighting strong stocks is a tough game especially with the indexes seemingly so strong. The Nasdaq Composite ended the holiday week at 23,366 - up 5.8% over four days. The DJIA turned up last week after a four-week slide. Now this. G.M. only reports it's production numbers on a quarterly basis and it's next report is not due out until 2026. I also know that about six weeks ago G.M. popped on an earnings report. So why will this week's stock performance be anything different for G.M. than last week? I don't have a reason however I just want you to hone in on this series of Puts which expire in two weeks. The open interest in this series of Puts is next to nothing. Two weeks away is a long time in the option market. G.M. looks like it's poised to open stronger again tomorrow after Friday afternoons late in the trading short term dip. If these Puts dropped to the $.88-$.89 cent range I would be looking at them and then hoping for a Tuesday reversal. I feel that G.M....
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Harley-Davidson

First, I am not a big fan of playing options on stocks in the thirty and forty dollar range. It's not like speculating in Boeing or Caterpillar Calls and Puts with these stocks swinging up or down two or three dollars nearly everyday. Harley Davidson is a thirty five dollar stock. Look at how it is trading so poorly on the good earnings news back at the end of April.
Now here is some of this news.
All the good news was wiped out by the forecasting of a bit of a slowdown in the second half of this year. Investors who bought in early this year when the stock was trading over fifteen dollars higher who correctly anticipcated this surge of earnings must now feel so frustrated. Where are their rewards? Now look below and see where the January 37 Calls are trading at. If the stock gets above forty you would be in luck. That would buy you their next two earnings reports. By then management might see their business in a more favourable light. Yet the chart looks ugly and there doesn't seem to be a support level.* With most option positions "time value" works against you. When you purchase eight months of time and your reasonings for buying in turn out to be correct the time value can become your friend. It is however still a scary position to be considering.

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