This morning I sold 6 GM Jul08 12.50 Puts for a net deposit of $143.50 in my taxable account.  This represents an annualized return of 13.50% on the potential purchase of the stock.

I just couldn’t watch GM at this level anymore without getting further exposed.  I have to look back to sometime in 1989 (split adjusted) to find when GM was down around 12.50.  That doesn’t mean it won’t get there this time but I am just loath to think it will.  It’s been just a few days (3 to be exact) but the chart suggest to me that GM may be around its bottom here (it closed at 17.15 today).  Now I don’t claim to be a super chart reader but they have helped me on occasion to make some decisions.  Some of those decisions have been good, some not.  Again, time will tell.