General Motors Corp
Option Trade Blog

Title: General Motors Corp Option Trade Blog

Business Description: General Motors Corporation is the business of design, manufacture, and marketing of cars and light trucks. There are major business segments are Automotive, and Financing & Insurance Operations. Main businesses in United States, Canada and Mexico and also other countries. Partnerships: Fiat Auto SpA; DaimlerChrysler AG; and Fuji Heavy Industries, Ltd., Isuzu Motors, Ltd., and Suzuki Motor Corp.

Symbol:   GM

Option Symbol:   GMCX

Reason for Initiation:   Down trending, down by between 30 - 45% in 1 year.

Action:   Short Call (equivalent to short selling stock)

Details:   Call: Strike @22.5, expiration Mar 06. Sold to open position on 22nd Feb 06, bought to close on 9th Mar 06.

Result:   +ve

Reason for Closing:   Trailing stop taken up by market.

Comments:
* Trade initiated one day after fractal sell.
* Profit can be better if close on 6 Mar 06, but was a conscious decision to hang on.
* Broader market was coming down.
* Conclusion: Good trade. Every step as planned.
* Action Plan: Close out earlier next time, no point hanging in for the last portion & wait for expiration in this case.

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