My General Motors (GM) Bear Put Spread was well in the money with almost a month left till expiry.

music selection:  “Dear Mr. Fantasy” — Traffic

Corona Virus has done its damage to my portfolio recently.  I do however have half my net debit spreads positioned bearishly.  That is paying off for GM which is down sharply recently.  I originally bought the 40/41 strikes bps at 90 cents per share and 20MAR2020 expiry on 6JAN2020.  The spread was well in the money and I was able to close at 98 cents per share this morning.  With only 2 cents of profit left and almost a month left for my position to be at risk, I decided to take my profits now lest good Corona Virus news causes a share rally.

I made 160 dollars on 1,800 at risk over 51 days.  That is 9% or 64% annualized.  This puts me back into the black for trading on the year.  My total annualized income is currently below budget but is recovering quickly.  I’ll be sure to detail that in monthly Transparency in just a few days.

Devour your prey raptors!

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Taking profits early on GM

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One thought on “Taking profits early on GM

  • February 26, 2020 at 10:14 pm
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    Good call on the GM spread.

    As you play defense, you’ll have to watch your balance between bullish and bearish positions. Perhaps if a correction develops it might make sense to take on a bullish tilt.

    Reply

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