General Motors (GM) sold off more than 10% in the final two weeks of 2022. While shares are moving higher in the new year, our put is in the money.
I am recommending we roll out two weeks to avoid potential assignment and buy time for the stock to recover.
Current Stock Price: $35.46
Net Debit: $9.52
- Buy to close the GM Jan Week One (1/6) 38 Put for around $2.53
- Sell to open the GM Jan Monthly (1/20) 38 Put for around $2.72
- Set your initial credit limit at $0.19, but adjust as needed to roll today
New Net Debit: $9.33
Expiration: After the close on Friday, Jan. 20
Potential Rate of Return: I am targeting breakeven for this position