General Motors Stock Pops After Chip Agreement

General Motors Company (NYSE:GM) stock is up 3.1% to trade at $42.88 at last check, after the automotive manufacturer inked a long-term agreement with GlobalFoundries. The deal comes amid ongoing supply chain problems and a global chip shortage that stalled factories amid the Covid-19 pandemic. 

Today's pop has the stock trending towards its first close above its 320-day moving average in more than 12 months, as well as the formerly-resistant $42 level for the first time since March. Year-over-year, GM is still down more than 15.5%. 

In the options pits, puts are the popular choice amongst short-term traders, per General Motor stock's Schaeffer's put/call open interest ratio (SOIR) of 0.81, which sits two percentage points from an annual high. In other words, short-term options traders haven't been more put-biased recently.

For those looking to weigh in with options now looks like the opportune time, as GM options can be had for a relative bargain right now. This is per its Schaeffer’s Volatility Index (SVI) of 35%, which stands higher than just 9% of readings from the past year, suggesting options traders are pricing in low volatility expectations at the moment.