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Old 02-15-09, 07:48 PM
STTG Super Elite
 
Join Date: Feb 2007
Posts: 449
GM PUT

If I can easily afford a March GM $2.50 PUT, should I buy it or should I buy 4 shares of RWR. I will take the $67 to $70 off the books and assume it is a total loss until I either sell it or exercise the option. I'm leaning towards the 4 shares of RWR since the put is expensive and real estate is at a low point.

I own a 100 share covered call to expire in September on Ford which I netted about half the Ford put option. I am trying to partially hedge my position in Ford but believe that Ford is a much better company than GM.

Any ideas.

Last edited by aquaswim47; 02-16-09 at 11:23 AM.
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Old 02-22-09, 09:43 AM
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Join Date: Feb 2009
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Is it worth buying 4 shares of RWR after commissions?
Perhaps you could do a pair trade on Ford and GM?
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