What to short next...

[notoc]

The same applies to buying the stock.

Which is why I asked you for some specific details on how you would have conducted the trade.

My only suggestion here was that if you were making a play on stock like this, which could very well end up being worthless, you might be better off buying a call instead.

Not quite, your exact words were: I don't understand why anyone would buy GM. If you want to gamble why not buy a call?

If you had talked me through your strategy for a Dec 23rd GM trade, then I could have told you why buying the underlying rather than the derivative might have been preferential given my particular set of logistics. On the other-hand your method might have exposed a real flaw in my own strategy and profoundly changed my way of trading.

But with no details it is all but impossible to answer your question, which is a pity. Perhaps we both missed a trick.

That was a suggestion. What you end up doing is really not my problem.

Well, thanks for the suggestion - I think I'll pass.

[notoc]

So, even with a bailout, what if no one wants to buy what GM has to offer?

At the very least GM's creditors would have a better chance of being paid and staving off their own impending bankruptcies.

[Velleity]

Which is why I asked you for some specific details on how you would have conducted the trade.
Not quite, your exact words were: I don't understand why anyone would buy GM. If you want to gamble why not buy a call?

If you had talked me through your strategy for a Dec 23rd GM trade, then I could have told you why buying the underlying rather than the derivative might have been preferential given my particular set of logistics. On the other-hand your method might have exposed a real flaw in my own strategy and profoundly changed my way of trading.

But with no details it is all but impossible to answer your question, which is a pity. Perhaps we both missed a trick.

Well, thanks for the suggestion - I think I'll pass.

Mr. Testosterone, I told you exactly what I might do. If I wanted to gamble on GM stock instead of buying the shares outright, since there was and is a good chance that common shareholders would end up with nothing, I would buy a call. How long I would go out and what strike price I would choose would be a guess and a gamble, just like the price you might pay for the shares.

And I said, too, that I would do this because I would have pretty much the same benefit if somehow the price rose at considerably less cost.

What I never said, and what you don't want to understand, is that I cared what you would or wouldn't do.

[notoc]

I don't think you really know what you are talking about. You quoted me and asked a direct question; you said, "I don't understand why anyone would buy GM. If you want to gamble why not buy a call?"

I have explained to you why there may be many reasons why buying the underlying might be preferable to buying the derivative but, without knowing the strategy you envisaged for a Dec 23rd call, I cannot answer your question specifically.

I told you exactly what I might do.

That's the whole point, Velleity. You have told me nothing past your unwillingness to purchase GM shares because of your suspicion that they might go to 'nothing' and mentioned a price for a March 09 contract.

I'm not going to repeat myself, if you want a specific answer to your question you'll need to provide me with the details for which I have asked in previous posts... if for any reason you won't or can't provide me with those details or, as you now appear to be suggesting, you didn't care for an answer in the first place - do us both a favour - next time you feel like commenting, don't quote me and don't follow the quote with a comment punctuated with a question mark.

[Velleity]

I don't think you really know what you are talking about.

I'm so happy for you.