Best Way To Play GM

General MotorsGeneral Motors (GM) is a stock that I am very bullish about. The best way to invest in GM is not the shares, but the warrants that were issued during the creation of the new GM. There are two kinds of warrants, GM Warrant A and GM Warrant B.

 

GM Warrant A

  • Symbol: GM-WTA
  • CUSIP: 37045V118
  • Exercise Price: $10
  • Expiration Date: July 10, 2016
  • Current GM Price: $24.17
  • Current Warrant Price: $15.12
  • Warrant Premium: ~$.95

GM Warrant B

  • Symbol: GM-WTB
  • CUSIP: 37045V126
  • Exercise Price: $18.33
  • Expiration Date: July 10, 2019
  • Current GM Price: $24.17
  • Current Warrant Price: $9.22
  • Warrant Premium: ~$3.38

The exercise price may change if there is a stock dividend or a stock split.

If you are as bullish on GM as I am, the warrants are better way to invest because they give you additional leverage. Obviously, they will go up faster than the shares, but will also go down faster. 

I personally like the GM-WTB because it gives downside protection if GM or the stock market blows up.

Click here to see more information on the warrants.

Disclosure: I own shares of GM and am looking to buy GM warrants.

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