General Electric Stock Turns Lower After Q2 Results

GE's revenue topped analysts' expectations, however

Deputy Editor
Jul 29, 2020 at 10:39 AM
facebook twitter linkedin


General Electric Company (NYSE:GE) stepped into the earnings confessional this morning, reporting a second-quarter loss of 15 cents per share, which was wider than Wall Street's estimates. Revenue, meanwhile, beat analysts' forecasts, driven mainly by sales in the power and renewable energy divisions. Additionally, GE reported a $2.1 billion loss in industrial free cash flow, which was smaller than the guidance the company released earlier in the year. As a result, the shares of GE are down 2.8% at $6.66. 

Last time we checked in on General Electric stock, the company had just named a new independent auditor for the 2021 fiscal year. Unfortunately, not much has changed on the charts since then, with the 100-day moving average we mentioned continuing to act as resistance. General Electric stock is still eyeing marginal three-month gains, though it's now suffering a 38.3% year-to-date slump. 

Meanwhile, options bulls are out in droves, per General Electric stock's 10-day call/put volume ratio of 3.14 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the elevated 74th percentile of readings from the past year. This indicates that traders have bought just over three GE calls for every put during the past two weeks, meaning an unwinding of these bullish bets could put more pressure on the shares.

Lastly, short interest is falling, down 20.6% in the last two reporting periods. The 87.98 million shares sold short represent just 1% of the stock's available float. In simpler terms, it would take less than one day to buy back these bearish bets.  

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners