Best Options Strategy for GM
Looking for the best options strategy for General Motors (GM)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live GM option chain right now, and a simple map from your view on GM to the strategy that fits it. Model any of them in the calculator before you trade.
About GM
General Motors (GM) is a major company in automakers. Options traders on GM tend to watch vehicle sales, EV plans and profit margins, since these can drive large moves in the share price.
GM for options traders
General Motors sits in the moderate-IV tier of the options market — liquid enough to trade efficiently, yet not so turbulent that strategies become prohibitively expensive. Its biggest single-day moves tend to cluster around quarterly earnings, where guidance on vehicle sales volumes, pricing power, and EV investment progress carries the most weight. Beyond earnings, GM is meaningfully sensitive to macroeconomic signals: consumer credit conditions, fuel prices, and tariff or trade-policy shifts can all reprice the stock quickly, making it a name where sector and macro awareness matters as much as company fundamentals.
Because IV rarely spikes into extremes outside of earnings, GM is a popular candidate for income-generating strategies. Covered calls are widely used by investors already holding shares who want to monetise the option premium during quieter stretches. Between catalysts, iron condors and short strangles allow traders to collect premium within a defined range. Around earnings, defined-risk spreads — bull call spreads or bear put spreads — let participants express a directional view while keeping the cost manageable when IV briefly expands ahead of the announcement.
Today's top-scoring strategy for GM
Our engine ranks defined-risk strategies on the live GM chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.
| Action | Qty | Type | Strike | Premium |
|---|---|---|---|---|
| Buy | 1× | PUT | $79 | $0.78 |
| Sell | 1× | PUT | $84 | $1.70 |
| Sell | 1× | CALL | $95 | $1.29 |
| Buy | 1× | CALL | $100 | $0.77 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Strategy analysis
Greeks vs price
Price × volatility (today)
| −30% | −15% | IV | +15% | +30% | |
|---|---|---|---|---|---|
| $111 | −$333 | −$315 | −$296 | −$280 | −$268 |
| $107 | −$294 | −$270 | −$252 | −$239 | −$231 |
| $102 | −$218 | −$201 | −$192 | −$188 | −$189 |
| $98 | −$112 | −$117 | −$126 | −$138 | −$150 |
| $93 | −$12 | −$44 | −$74 | −$100 | −$122 |
| $89 | $25 | −$20 | −$58 | −$89 | −$115 |
| $84 | −$35 | −$64 | −$91 | −$115 | −$135 |
| $80 | −$161 | −$160 | −$164 | −$170 | −$179 |
| $76 | −$279 | −$260 | −$246 | −$238 | −$234 |
| $71 | −$338 | −$324 | −$309 | −$296 | −$286 |
| $67 | −$354 | −$349 | −$342 | −$333 | −$324 |
Live scan from 2026-07-31 · quotes delayed ~15 minutes
Historical backtest: how a Iron Condor on GM would have performed
We approximated a Iron Condor on GM, entered repeatedly over the past year (93 historical entries, each held to expiration) with Black-Scholes-modelled entry premiums. Here is how that would have played out on real GM price history — an educational backtest, not a prediction of future returns.
Approximate: entry premiums are modelled with Black-Scholes from trailing realised volatility, held to expiration and settled against the real historical close. Real fills, implied volatility and slippage differ — treat it as directional context, not exact returns.
Implied volatility
GM is currently trading with elevated implied volatility, so its options carry richer premiums. On the options we scanned that was around 39% implied volatility, and higher implied volatility means richer premiums and wider expected moves.
Options on GM currently price in about 39% implied volatility, versus roughly 32% the stock has actually realised over the past month. The two are roughly in line, so neither buying nor selling premium has a clear volatility edge here.
GM's IV Rank is 35/100: implied volatility sits 35% of the way between its 11-day low (34%) and high (48%), and is above 42% of recorded days. Premium sits around its usual level for this stock.
Off that volatility, the options market is pricing a move of about ±$9.43 (±11%) in GM by 2026-08-28 — a range of roughly $79.49 to $98.35. Strikes inside that band hold most of the premium and see most of the action.
Across strikes, downside puts on GM trade at a higher implied volatility than upside calls — the market is paying up for crash protection. That skew favours selling put spreads or buying calls over symmetric trades.
GM options chain highlights: open interest, volume and skew
The live GM options chain shows a put/call open-interest ratio of 0.6 (bullish-leaning (more calls)), with at-the-money implied volatility near 39.6%. Open interest clusters at the $100 call — a common resistance "wall" — and the $85 put, a support "wall": the strikes option writers are most exposed to into expiration.
Snapshot of open interest, volume and implied volatility for the nearest scanned expiration — context, not a trading signal.
GM insider trading activity (SEC Form 4)
Open-market insider transactions at GM over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Barra Mary T | Sell | 8,896 | $757K | 2026-06-16 |
| Barra Mary T | Sell | 83,476 | $7.1M | 2026-06-16 |
| Barra Mary T | Sell | 6,867 | $584K | 2026-06-16 |
| Barra Mary T | Sell | 20,582 | $1.7M | 2026-06-09 |
| Barra Mary T | Sell | 23,000 | $2.0M | 2026-05-29 |
| Harvey Rory | Sell | 9,124 | $775K | 2026-05-28 |
Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.
Liquidity and tradeability
GM options are thinly traded, with wide bid-ask spreads around 11.7% near the money that eat into any edge — favour simple single-leg or tight defined-risk trades, and always use limit orders.
Earnings & IV crush
GM's next earnings report is due around October 20, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.
Dividend and assignment risk
GM pays a dividend of about 0.9% a year, so short or covered calls on it carry early-assignment risk around each ex-dividend date — in-the-money calls are most exposed just before the stock goes ex-dividend.
Key figures
- Market cap
- $78.7B
- Beta (vs market)
- 1.31
- 52-week range
- $51.69–$87.62 (100% up the range)
- Short interest
- 2.8% of float · 3.0 days to cover
Other strong setups for GM
If your view on GM differs, these also scored well in the latest scan:
How to choose an options strategy for GM
Start with your outlook on GM, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:
Bullish
Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.
Long Call → Bull Call Spread →Bearish
Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.
Long Put → Bear Put Spread →Neutral
Sell an iron condor to collect premium while GM stays between two strikes, or write a covered call against shares you already own.
Iron Condor → Covered Call →⧉ Embed this free calculator on your site →
How we pick the best strategy
For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →
Open GM in the free calculator →
Frequently asked questions
What is the best options strategy for GM?
It depends on your outlook. Bullish traders often use a long call or bull call spread on GM; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.
Are GM options liquid enough to trade?
General Motors (GM) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.
How much money do I need to trade GM options?
Buying a single GM call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.
Is this financial advice?
No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade GM or any security. Do your own research.
What does General Motors do?
General Motors (GM) operates in the Auto Manufacturers industry. The "About General Motors" section above gives a fuller picture of what the company does and how it earns money.
Does General Motors pay a dividend?
Yes — General Motors currently pays a dividend yielding about 0.9%. If you hold the shares (for example to write a covered call), the ex-dividend date can trigger early assignment, so check it beforehand.
When does General Motors next report earnings?
General Motors's next earnings are expected around October 20, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Tickers related to GM
Comparing GM with similar names can help you choose the best options strategy:
Company information
- Headquarters
- 1240 Woodward Avenue, Detroit, MI, 48265, United States
- Industry
- Auto Manufacturers
- Employees
- 156,000
- CEO
- Ms. Mary T. Barra
- Phone
- 313 667 1500
- Website
- www.gm.com
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Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.