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General Electric Healthcare Spinoff to Join S&P 500

Options traders have been bullish toward GE

Deputy Editor
Dec 29, 2022 at 10:42 AM
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General Electric Co (NYSE:GE) is in the spotlight today, after news that the company's healthcare spinoff, GE Healthcare Technologies Inc, will join the S&P 500 upon its debut. The new stock will replace Vornado Realty Trust (VNO). 

At last glance, GE was up 0.6% at $82.50. After bouncing off support at its 200-day moving average earlier this month, the security has since reclaimed support at the $81 level. Year-to-date, the equity is down 12.6%. 

Calls have been much more popular than usual in the options pits. GE's 10-day call/put volume ratio of 1.99 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 93% of readings from the past year. 

Echoing this, GE's Schaeffer's put/call open interest ratio (SOIR) of 0.69 sits higher than only 13% of annual readings, meaning these traders have rarely been more call-biased. 

The brokerage bunch is leaning bullish as well, with 11 of the 16 in coverage carrying a "buy" or better rating. Plus, the 12-month consensus price target of $90.11 is a 9.1% premium to current levels. 

 

 

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