Stocks quoted in this article:
Option Brief: General Electric Company (NYSE:GE) followed its Dow comrades higher on Thursday, tacking on 1.8% to end at $24.95. What's more, option players gambled on more short-term upside for the blue-chip conglomerate, which finished back atop its 200-day moving average for the first session in four.
By the time the closing bell rang, GE had seen roughly 53,000 call options cross the tape -- more than double the number of puts exchanged. Garnering notable attention was the weekly 2/14 26-strike call, where more than 5,700 contracts changed hands, primarily in several simultaneous blocks at the ask price. Plus, the majority of the action translated into new open interest, hinting at freshly bought bullish bets.
To profit on their call purchases, the buyers need General Electric Company (NYSE:GE) to surmount $26.07 -- which represents the strike plus the volume-weighted average price of $0.07 -- by the close on Friday, Feb. 14, when the options expire. Should the stock remain beneath $26 throughout the options' lifetime, the most the traders can lose is the initial premium paid for the calls.