A twofer. First up Schaeffer's Research:
General Electric Company (GE) was the center of heavy option activity on Wednesday, with volume of 165,000 options traded -- well above the stock's usual volume of just 142,000 contracts.
Players zeroed in on the May series, which expires after the close on Friday. The May 17 put was most popular, with some 16,900 contracts changing hands -- half at the ask price, suggesting they were bought.
Conversely, the May 17 call was also popular on Wednesday, with 8,148 contracts changing hands at this strike -- half at the ask price, indicating a portion of these calls were purchased. Open interest increased by roughly 1,000 contracts overnight, to 15,096.
In the May series, peak put open interest can be found at the 18 strike, while the 20 strike holds the title of peak call open interest....MORE
From Options News Network:
General Electric (NYSE: GE) bull put spread
With General Electric Co. (NYSE: GE) being a diverse conglomerate and major Dow Jones component, its movements tend to mirror the overall index itself. Its many businesses provide a partial hedge against weakness in a single area. GE also has been abnormally volatile as of late and has seen its share price cut by more than $3 from its April 30 highs of $19.70.While the Dow is now trading below its 200-day moving average, GE is still 40 cents above its 200-day simple moving average (SMA). This could be a level to examine for entry or support.
GE Credit Spread Trade Details:
GE dropped more than 5% to $16.39 during morning trading
Credit Spread/Bull Put Spread–
- Sell the June 16 put
- Buy the June 11 put
- Net credit of $0.60 per spread ($60 per lot) or better
Maximum profit: $0.60 (the credit collected).
Maximum risk: $4.40 (the difference between strikes minus the credit collected). Return on risk is approximately 14%.
Breakeven: $15.40 (the strike of the short put minus the premium)....