If you skipped GE's last rally, now could be your chance
General Electric Co (NYSE:GE) stock has been chopping higher on the charts, last seen up 0.5% at $104.58. The security boasts an impressive 104.1% year-over-year lead, and scored a June 16, five-year high of $108.90. Investors that missed this last rally could soon have another opportunity to ride GE's next move higher, as it is now trading within striking distance of a trendline with historically bullish implications.
According to Schaeffer's Senior Quantitative Analyst Rocky White, General Electric stock is currently within one standard deviation of its 40-day moving average. Over the past three years, shares have seen three similar signals, and were positive one month later 67% of the time, averaging a 3.5% pop. A move of comparable magnitude would put GE back above $108.
Now looks like an ideal time to bet on General Electric stock's next move higher, as it boasts affordably priced premiums. More specifically, the security's Schaeffer's Volatility Index (SVI) of 26% ranks at the extremely low 12th percentile of readings from the past year.
It's worth noting GE's Schaeffer's Volatility Scorecard (SVS) sits at 80 out of 100. In other words, the equity has generally exceeded options traders' volatility expectations over the past 12 months.