Unusual Options Activity In GE
Two month ago, I talked about how GE had bottomed and a close above the $8 level would confirm that bottom,
But before considering going long, the conviction for me would be if price can pull back to the daily demand at $6.75, then take out the $8 level, the bottom in GE would be more convincing at that point.
One month ago, I talked about since price closed above $8, the next two levels I was targeting was
daily supply at $10 and $11.50.
Both levels were hit, but now price is pulling back from the $11.50 daily supply.
GE has had one hell of a run the last since early December with the stock price increasing almost 100% in a little less than 3 months. Yesterday, I noticed unusual options activity in GE. The Smart Money bought a ton of the April 15 $9.50 and $9.00 put options.
Those strike prices represent a nearly 38.2% and 50% fib retracement.
The price action over the next several weeks should be interesting. If the Smart Money is going to be right on this one, they don't have a lot of time as the options expire in less than 45 days.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
I would side with these traders as the stock has come back too far in too little time and the underlying issues really remain. While they have been celebrated for selling assets to bring down debt, the business that remains gets weaker by the day.
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Awesome comment and right on point.