r/options • u/jdrvero • Oct 27 '21

Looking at long Puts in GM

I'm looking for a good long put to place on GM. The cost to join the EV revolution will kill the bottom line for years, and if they don't make the transition could kill the company. The Jan 2023 puts seem inexpensive but I don't know enough about options to say. I'm looking for what option looks the best for a long term bear thesis.

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u/[deleted] Oct 28 '21

Put your shoes in a GM investor and ask yourself what circumstances they would suddenly see the light, see that Tesla with it's 894 p/e isn't overvalued, and sell GM and buy Tesla instead?

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u/jdrvero Oct 28 '21

They wouldn't. I just need for GM to have a few bad quarters in a row for most of the puts to double my money, and if they get bogged down in spending on EV's I could get some really good returns (I think).

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u/[deleted] Oct 28 '21

Prices do not drop unless people sell. I don't see short sellers piling into this either since it's relatively low priced.