Hi HiSpeed,
I suspect GM is perhaps a bit too obvious of a short right here, with the strike, publicity, and all. Some sort of squeeze might be in progress.
Still, long term, GM would appear to be at a competitive disadvantage with its peers, regardless of the strike's resolution. This strike is highly symbolic with the UAW, they will not concede much, if anything. Also, intensifying Asian competition is just over the horizon, what with the current $/Yen ratio.
Some sort of at-the-money option spread might be the most rational approach to playing this, at least for now. |
