There is a Calendar Spread for General Motors with call options where it is possible to loose a small amount of money or earn a lot. Logically, in order to win it is desirable that General Motors waits to go bankrupt at least a couple of months.

It is quite reasonable that this will not happen in two months, since it has been proposed a swap of debt for shares at a rate of 225 shares of General Motors which yesterday closed at 1.15 dollars for every $ 1000 nominal par value of bonds.

The exchange represents a significant loss for those who bought the debt at par, but a big profit for those who bought the debt at 5% of its value.

There remains the question of whether bond buyers will accept this offer, but the negative choice is not very gratifying. It is therefore reasonable to assume that the company will still be quoting, and that is all we need for the Calendar Spread to give secure money.

It is a question of buying one call with exercise price of $ 1 expiration date December 2009 and to sell another call strike $ 1 which expires on June 19th. In a single month we will recover the whole investment of the December call excluding $ 0.06, which represents the highest risk, the only investment and the potential loss.

If the company does not go bankrupt, the same call will be available to be sold on June 19th with expiration date of July, earning $ 0.20 – 0.30 for each month until December. At that very moment we will not have to buy anything, because the call purchased in December covers all monthly sales.

Place a single buying order to the calendar spread, to ensure that in no case will be paid more than what is decided to pay. Yesterday there was a last minute crossing at 0.06, even something at 0.05.

In this operation there is a reasonable expectation of getting the 1,000% APR. Good luck!