Scott Nations Suggests An Options Strategy In General Motors Company (GM)

CNBC's Options Action's Scott Nations suggested investors to consider an options strategy in General Motors Company (GM). He said that General Motors Company's (GM) shares are pretty expensive, and he added that if you are long the stock you should sell a covered call. Scott Nations wants to sell the January 35 call for $1.00. His break even is at $36, and the premium would also provide him a protection from the eventual decline in this stock. If he gets called away, his annualized return would be 15%. General Motors Company (GM) gained 1.18% today, and closed at $34.20.