$310,000 long on GM at $10/share

Discussion in 'Stocks' started by short&naked, Oct 8, 2008.

  1. Currently -75000 :mad:
    Should I bail? :(
     
  2. GM will be bankrupt in 12 months,
    their only hope is an electric car that the hope they'll sell for 40k, do the math. nobody is buying any cars anymore. they won't be able to survive a 1 year recession when they've been burning 1bil per month in "normal" years
     
  3. R.O.F.L.:

    I doubt even you are this stupid Shortandnaked!

    A troll looknig for debate I suspect.
     
  4. Actually, I'm dead serious. :(
     
  5. It depends on what portion of your capital is represented by the initial position. You bought 31,000 @ $10, right?

    If this amount represents a significant portion of your trading capital, bail if you think your return on the money trading it will outpace potential recovery in GM. If it's a small portion of your capital (which I doubt), you can hold it if you believe GM will come back.

    You could wait a long time for GM to come back to $10.

    Are you in danger of a margin call?
     
  6. sumosam

    sumosam

    collar it...sell calls first later when vix comes down, buy puts
     
  7. I bought gm at 9.75 and thought that 25 billion bailout auto industry got will rally gm. when it didnt and went down to 8.75 I cried uncle and sold out. Its better to retreat and fight another day. For those saying gm will go bankrupt. it will never happen with democratic congress, senate and president. They will lend it trillion dollors just to keep it afloat
     
  8. Daal

    Daal

    if you want to speculate GM debt is a far better bet then the stock. government could punish shareholders but might bailout a big default in this kind of enviroment. regardless buying stocks making 50y lows without HUGE confidence is a sure fire way to go broke, you've been warned
     
  9. Mecro

    Mecro

    I'm amazed you even have 310,000 to play with, considering the stupidity of that trade.
     
  10. Mecro

    Mecro

    Good post, right on.
     
    #10     Oct 8, 2008