What are the chances that GM will be cut in half by Sep 16th? The Sep 16th $32P is trading at about $2.10-2.15. At GM $16, those puts will be worth at least $16; an almost 8X gain, Every $1,000 worth of puts will then be worth $8,000. To just break even on the trade, all GM has to do is to decline to $30. If it keeps dropping to $28, those puts will at least double to $4.20. At GM $26, the puts will have tripled. You get the idea. Nine weeks to go until Sep monthly expiration and GM's earnings are out on July 26th. All that's missing is the silver platter...
Silver Platter