News Flash: GE Opens Above $7, Now Below $6

We got a huge break with the General Electric (GE, $5.97, down $1.04) put options I mentioned last night. The March $7.50 puts (GEWOU, $1.57, up $0.52) opened at $1.03 and traded as low as 91 cents this morning.

The April 6 puts (GEWPC, $1.16, up $0.31) opened at 82 cents and traded as low as 77 cents.

GE is obviously having an effect on the Dow as well. The index started off in positive territory but quickly gave back its gains as GE started to sell-off. I read somewhere if GE goes to $0 then the Dow would fall to 5,400. GE is a Dow component and I’m not sure of the percentage it makes up of the Dow but I don’t think GE goes to zero anytime soon, if ever.

In any event, I said I wouldn’t mention the “all-or-nothing” trades until they were profitable or until we get closer to expiration but I didn’t think I would be writing about the same thing a hour into the trading session. Set stops to protect your profits!

Rick Rouse
Rick@OptionsMentoring.com

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