GE Stalls Despite "Top Pick" Status

The security is pulling back from its eight-month highs early last week

Digital Content Manager
Nov 30, 2020 at 10:39 AM
facebook twitter linkedin


General Electric Company (NYSE:GE) is sliding today, off 1.1% at $10.28, failing to gain traction after a bull note from Barclays. The analyst named the energy stock as a "top pick," citing the company's free cash flow, which is set for material improvement in the next two years. 

While GE is sliding from its Nov. 24 eight-month peak of $10.85, several layers of support are still on standby, including the equity's 10- and 20-day moving averages. The security hasn't yet caught up to its pre-pandemic levels above the $12 mark, though it has almost doubled off its mid-May low of $5.48. 

Options bulls have tried to  capitalize on this recent surge, per GE's 50-day call/put volume ratio of  4.45 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 99% of readings from the past year. This indicates long calls are being picked up at a much quicker-than-usual clip. 

Analyst sentiment has been quite positive, too. Of the 12 in coverage, eight call GE a "strong buy," while the remaining four say "hold." The 12-month consensus price target of $9.46, meanwhile, is a 7.1% discount to current levels. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners