What’s the trade?
Even at $32, I’m hearing GM stock will still trade up at the IPO, says Gary Kaminky. Chatter suggests hedge funds may flip it in the same day – that is buy and then go short.
However if you’re a retail investor it’s important to know that retail allocations are expected to be quite limited, Kaminksy adds. And longer term, don’t forget that GM won’t be on the S&P 500 for about 6 months. That should leave fundamental support underneath it.
I’d look at a pairs trade; long GM and short Toyota , says Brian Kelly.
I’d be inclined to play the global auto trade with Fiat , Daimler , Renault or Peugeot, says Tim Seymour.
Read More:
GM Underwriters Set to Raise IPO Price to $32-$33 a Share
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Trader disclosure: On November 15, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AAPL), (BAC), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (UPL), (C), (PEP), (OIH), (HES), (AXP), (GS), (FCX), (VRTS), (POT), (AAPL), (IBM), (DIS), (MCD)
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