General Motors reports earnings in the 3rd quarter prior to market opening on Wednesday, October 31. Subsequently, a number of reports from Ford and Tesla, which were ahead of expectations, experts and traders are waiting to see if GM can arrange the same thing the next day.

According to the estimates of an outside expert consensus, in the 3rd quarter GM will say the adjusted benefit on the promotion in the amount of $1.25 on earnings in the amount of $34.85 billion. In the same quarter of last year, the adjusted profit on the promotion amounted to $1.32 with the rescue of $33.62 billion.

Of course, trade wars and tariffs, and how it affects real costs, will be a tremendous focus for professionals and traders on tomorrow's call. When the firm in the final one reported, CEO Mary Barra accepted, in fact, that there are a large number of different techniques, which has the opportunity to play the situation with both NAFTA, for example, and with China trade. She has noticed, in fact that some habitats are more localized than others, in consequence of this, all sorts of markets, firms will startbut affected everything.

It is assumed that the restraining moments of the exchange rate will continue to have an impact on the results of the third quarter. In the second quarter, the firm focused special care on the poor impact of the devaluation of the Brazilian real and the Argentine peso on the revision of the monitoring for an absolute year.

Both monetary units weakened relative to the US dollar in the 3rd quarter. The Chinese yuan has weakened against the us dollar, which, as experts expect, affects the Chinese business GM.

Q3 Supply

As a rule, GM has already released its own Q3 delivery characteristics. For the quarter GM expressed, in fact, that sales in the USA fell by 11% year-on-year to 694 638 cars. At the same time, the average value of transactions (ATP) have increased approximately $700 to $35,974. The instruction explained the increase in ATP as a reduction in incentive costs, for example, and resale more expensive trucks, jeeps and crossovers.

GM key economist Elaine Buckberg hit a life-affirming note saying " the economy and auto industry of the USA remain strong."The anxiety that happens to be seen more between professionals and traders, how long has it been able to last?

In China, the texts of GM implementation have decreased by 14.9% year on year to 835 934 cars, rather than the decrease of 2.5% over the 1st 9 months of 2018. GM has shown, in fact, that the market for vehicles in China continues to soften and in fact that its strategy will still be focused on those areas where demand is higher: all-terrain vehicles, multi-purpose transport methods (MPV) and luxury cars.

Cruise and unmanned vehicles

GM announced, in fact, that Honda is investing in a joint difficulty of $2.75 billion in Cruise, a subsidiary of GM for the production of unmanned vehicles. As part of this transaction, HMC will invest an initial $ 750 million in replacement for personal capital and will Deposit an additional $2 billion in the direction of the appropriate 12 years.

In agreement with the agreement " Honda will work together with Cruise and General Motors to Finance and develop a special independent car for the cruise. They also said that they will analyze the mass capacity of the paid deployment of the cruise network.”

For example, not long ago, GM even announced, in fact that Softbank is investing $2.25 billion in 19.6% of promotions Cruise. The final round of investments becomes an estimate of the cruise of $ 14.6 billion.

GM Options job

According to the texts of the market Maker Move index on the thinkorswim platform, options investors estimated 5.8% of promotions in any direction around the release of benefits. The estimated volatility has been at the 100th percentile since this morning.

Short-term auction in November. 2 weekly expiration, the energy of the call was concentrated on the value of 34.5, while trading on the put side was concentrated on 31.5 strike.

After a number of months in November. 16 lunar exposure period, signals were functional at rates of 34 and 35 Strikes. In not so long ago occurred trade was not a tremendous size for put, but sincere attention to the higher 36-strike put.

30-Strike, announced in December. 21 Chardonnay expiration still beheld the languid trade. During yesterday's session, the size of the strike was 10 170 contracts.

Note: call options imply the right, but not the debt, to acquire property at a given cost in the direction of a set period of time. Options presuppose the right, but not the promise, to sell the property at a pre-set value in the direction of a set period of time.

TD Ameritrade explanation is for educational purposes only. Member SIPC. Options involve risks and are not suitable for all traders. Please read the features and risks of standardized settings.