Cars.com Call Options Hot After GM Announcement
Summary
Cars.com Inc (NYSE:CARS) stock is trading up 7% at $10.70, after the online auto retailer said its subsidiary, Dealer Inspire, inked an OEM deal with General Motors (GM) to serve as the website provider in the carmakers U.S. dealerships. The jolt higher has sparked a flood of activity in CARS stocks options pits, with most of the action occurring at the hands of bullish traders. With less than two hours left in todays trading, roughly 5,000 calls have changed hands on CARS, compared to fewer than 350 puts. Specifically, the September 10 and 12.50 calls are most active, and it looks like traders may be buying to open the options to bet on more upside through expiration at the close next Friday, Sept. 20. Theres a bullish bias toward CARS outside of the options pits, as well, with four of six analysts calling the stock a "buy," and not a single "sell" rating to be found.