fxtrader07

How I Plan to Trade My Depressed GM Stock

this was a bad trade that you really could have expected. many warned against it, myself included. covered call writing is fine, but doing it on stocks that have been in deep trouble for years if not decades without being able to fix even one thing is a surefire receipt for disaster. you were trading on hope then, as you stated yourselves and you are holding on just on hope now. GM stated they have enough cash for 2008 but declined any comment for 2009. a dividend cut might be the least of your problems and the correct thing imho would be to close this trade and take the losses as it was absolutely ill-advised in the first place.