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[arthur]

Unfortunately, there weren't many opportunities to buy puts on GM bounces, to partially hedge the calls, since GM fell from over 22 1/2 to below 20 over the past week with little volatility. Also, it seems, the market knew Kirk Kerkorian sold 12 million of his 56 million GM shares December 15th and 19th before the news came out. Kerkorian sold the shares at 22.02 and 20.21 after paying 31.00 for a tax loss. GM is down another 0.50 in afterhours.

If GM doesn't make a positive announcement before the end of the year, to send the stock way up and help major shareholders, that may be a sign it will declare bankruptcy, and the stock may fall to zero sometime in 2006. However, I plan to buy more Jan 20 and 22.5 calls, if GM opens down, and if it bounces around or at least one point, I'll buy long-term in-the-money puts to partially hedge the calls.