General Electric Company (GE) Leads Dow Higher, Upsetting Option Bears

General Electric Company (GE) is surrounded by skeptics, who can't be too pleased about today's gains

Sep 16, 2015 at 3:15 PM
facebook X logo linkedin


General Electric Company (NYSE:GE) is up 2.1% at $25.83, making it the top percentage gainer on the rallying Dow. The stock is getting a lift after Credit Suisse added it to its focus list, while the company is making headlines on a pair of transactions involving its GE Capital unit.

In today's options pits, calls are running at four times the expected intraday rate -- and more than quadruple the pace of puts. Longer term, though, traders have shown an unusually strong affinity for bearish bets over bullish. GE's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 0.72 -- in the 77th percentile of its annual range. In other words, traders have bought to open puts over calls at an accelerated clip over the last two weeks.

Echoing this, GE's Schaeffer's put/call open interest ratio (SOIR) checks in at 1.02. Not only does this reading indicate put open interest edges out call open interest among short-term strikes, it also ranks above 81% of comparable readings from the last 12 months.

The skepticism witnessed in General Electric Company's (NYSE:GE) options pits isn't totally unwarranted. Prior to today, the stock was barely above water, on a year-to-date basis. It's not in the clear yet, either. While GE has hurdled its 50-day moving average, its 80-day trendline is just overhead, threatening to short-circuit its momentum.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI