Closing our GM puts to lock in profits and free up capital for new plays.
Shares of GM haven’t bounced quite as quickly as I expected. The stock traded below our $50 strike price earlier in the week after a Wall Street analyst downgraded the stock.
Since then, the stock has bounced, but there is now more risk that GM could close below our $50 strike price next month.
I’d rather buy out of our promise today, which allows us to lock in a smaller than expected gain – but a gain nonetheless. This way we can free up capital currently set aside for this trade and use it for new income plays with better dynamics.
- Buy (to close) our GM March 18th $50 put
- Limit $2.35 or less
- 11:52 Executed
- Bot 1 GM March 18th $50 Put @ $2.28