Put Options on GM on 6/3/2019

General Motors Company (GM) designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide.

The company operates through GM North America, GM International, GM Cruise, and GM Financial.

It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, Jiefang, and Wuling brand names.

The company also sells trucks, crossovers, and cars to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.

In addition, it offers connected safety, security, and mobility solutions for retail and fleet customers, including automatic crash response, stolen vehicle assistance, roadside assistance, dealer maintenance notifications, remote door unlock, turn-by-turn navigation, vehicle location services, hands-free calling, smart driver, and marketplace, as well as connectivity packages comprising remote vehicle access through a mobile application, on-demand vehicle diagnostics, connected navigation, and 4G LTE wireless connectivity. Further, the company provides automotive financing services. 

Shares have fallen through a support level after the President announced possible tarrifs against Mexico. Any such tarrif would hurt carmakers immediately. Lower prices are expected for this stock.

We will be trading June 21 Put options.

Entry Point: $33.34

Trading Range: $30.56 to $45.00

Trade Buy 1 June $34.00 Put at $1.50 For a net debit of $1.50 Profit/Loss Analysis Breakeven at $32.50 Maximum profit is unbounded Maximum loss is ($150.00) at strike of $34.00 Closing Summary Sold 1 June $34.00 Put at $0.00

Position closed on 6/21/2019 at price of $0.00 with a -100.00% loss in 18 days.

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