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 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.