Steve Sosnick's General Motors Options Trade

Steve Sosnick of Timber Hill spoke on Bloomberg Markets about an options trading idea in General Motors Company (NYSE: GM).

He wants to sell the April 7th, 35 strike calls and buy the April 7th, 37 strike calls in the name for a total credit of $0.70. If the stock closes below $35 at the April 7 expiration, he is going to make the maximal profit of $0.70. Potential loss is capped by the purchase of the April 37 call and he can maximally lose $1.30, in case General Motors jumps to $37 or higher.