Our General Motors (GM) Jan Monthly (1/20) 38 Put is in the money. I am recommending we accept shares.
The plan is to sell an at-the-money call next week with the goal of being called out of shares. We will then re-enter the position after the company’s earnings report, which is scheduled for Jan. 31.
Despite the position being underwater, GM is grossly undervalued and a tremendous cash generator. We will continue to trade this core position throughout 2023.
Current Stock Price: $35.67
Net Debit: $9.32
Action: Accept shares
Cost Basis: $47.32
Potential Rate of Return: I am targeting breakeven for this position