This is a new position in General Motors (GM). General Motors is an US-Based auto manufacturer with global reach. General Motors emerged from bankruptcy after the financial crisis, a much stronger company as it was able to get rid of many of the problems that dragged it down. The company has very good growth prospects in developing countries, as it is one of the major competitors in China, and is reemerging as a leading US provider as well with innovative new products such as the Chevy Volt. Chrysler also recently reported earnings today, and they had a quarterly profit for the first time since their bankruptcy, and considering how dismal of a company that Chrysler is, if they can do that, GM should be doing great. This position is established in the Naked Put Investing Portfolio (NPIP), to replace some of the positions exited this morning. The new profit/loss info is below:
5/2/2011 -- Sold To Open 1 GM July $27 Put @ $0.34
The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Downside Coverage (from current price of $32.18): 17.2%
Potential Annualized Return At Expiration (7/15/2011): 5.53%
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