While browsing my blog I saw on the ISE Put/Call widget that GE call options were active. So far on the ISE, 135,000 Calls traded verses 2,000 puts with an ISEE Value (ISE customer calls opened/puts*100) of 6,869. Ebay was second place at 6,771 FYI. The actual contract in play was the January 2011 $22.50 Call and most of the volume occurred between 11:00-12:00p, from $0.70-$0.75. This is just under million being put to work for January 2011, even if just a hedge. Since GE is trading at $16, if this trade is a spec long then it's betting on 40% upside by January 2011, or a volatility spike. Here is a snapshot courtesy of
Optionsxpress of .VGEAX (GE January 2011 $22.50 call). I also provided a chart of GE itself and it's at a wedge inflection point (chart courtesy of
Stockcharts.com). JP Morgan had positive comments about GE today and the DOE is making moves with smart grid spending, related? Read articles below.
Articles on the trade:
Options & Future Only Highlight Positive GE Research Call (GE) (
24/7 Wall Street)
JP Morgan Talks Up GE After CFO Interview (
Barron's)
DOE smart-grid trials fund utility-scale energy storage (
CNET)
GE Applauds the Department of Energy's Announcement of Smart Grid Demonstration Projects across the Nation (
BusinessWire)
