1) GM most likely to file for bankruptcy as the government is pushing for it 2) The timeline is around June latest. 3) Once bankruptcy is filed, stock will crash and all otm options will drop close to zero, as evident by leh. Based on that, i am thinking of making the following trades: 1) short the stock at $1.75 2) sell the sept 2P for $1.4 3) buy the may 2.5C for $0.15 (as hedge in case of blackswan and gm shoots up). All 3 positions are of equal size. If gm does not file by end of may expiration, i will roll position 3) to june expiration. I really dont see much risk involved in this trade, due to the insane premium on the 2P. What do you guys think?