The key here is that you have to have enough money in your account to stand ready to buy the shares of GM at the lower price, in this case $27/sh. Every contract you sell, you earn $0.55 (current bid) or $55 and you then are obligated to purchased shares of GM for $2700 until December 20, 2014 when the contract expires.
That is more than 20% below today's prices and at that level you would be earning a 4.44% dividend yield, which is very attractive. You would also be buying GM shares at the same price that the company stands ready to buy them for their treasury account. I think that makes sense to me.
The $55 is what you earn for insuring against a severe market decline. GM has already declined from an outlandish $42 a share in December and touched as low as $32 in the correction.
I think this $55 return is better than holding T-Notes.
Sometimes boring is good. This is a limited-return, boring strategy, but it works.
Consult your financial advisor to see if it is right for you.
Tim 10:53AM EST 5/12/2014