Monday, January 24, 2011

Ooohh, So Close for the General Electric Option Players (GE)

On Thursday we posted "General Electric Earnings Friday Morning: Option Buyers Like Wild-Ass Speculation (GE)":
... Now, with fourth-quarter earnings scheduled to be released early Friday, investors are stacking up bets in the options market that GE will move to new high prices.

Speculators have amassed significant positions in GE's January $20 calls, which would increase in value if the $18.33 stock pushes past $20. At this moment, the bulls need a massive earnings day move for the stock to jump 9% so the calls do not expire worthless....
The stock closed at $19.74, the calls expired and today the stock is up 34 cents to $20.08.
Here's Friday's Barron's Take
GE's Electric Quarter a Sign of Things to Come
...The future looks increasingly bright for GE, and investors who buy in now will be able to capitalize on the surge.