Risky. Government has said 'yes' to corporate America bailout and 'no' to taxpayer bailout. No precedent has been set, as yet, to reverse the heading of bailing out more corporate America. If that were my only trading choice, I would buy CDs.
You mean reasons other than (a) it's less than $3 from zero and (b) they're weeks away from getting a huge government bailout? Other that that, can't think of any reason not to.
1) Is GM easily shortable? 2) You may be focused too much on the "certainty" of a small profit to the downside and not respectful enough of upside surprises. 3) Do you feel the same way about Ford (NYSE:F)?