Buy GE…said no one recently :)
Trade: Buy to Open GE JAN 15 2022 $3 Strike Call – Qty 10 @ $4.45 per contract. Overview: General Electric Company operates as a high-tech industrial company in the United States, Europe, Asia, the Americas, the Middle East, and Africa. It operates through Power, Renewable Energy, Aviation, Healthcare, and Capital segments. Thesis: well….nobody likes GE these days. LOL so why not buy a hated asset as Buffet likes to say? Seriously though. GE is undergoing a dramatic business transformation through the shedding of its business units over the past 5 years. The impetus is their highly levered balance sheet which has significant pension liabilities. I am confident that GE management recognizes the seriousness of the situation given its decision to cut the dividen a few years back which sent the stock into its current price range along with their commitment to raise cash through these asset sales – currently…
It’s getting COLD in here….
Trade Management: position CLOSED July 20th, 2020. 7/20/20: we had a significant 7.4% pullback since the high established on July 8th. On July 11th we tighten our sell order limit to $8.50 to align with our $38 initial price target in case stock popped off the 50 day MA which luckily it did. Today, July 20th, the sell limit triggered at the opening. Though there was plenty of time on the contract, within the entire portfolio we’ve been observing higher than expected volatility relative to the S&P 500 which is a signal for dialing back exposure and increasing our cash position. 7/8/20: on July 8th the position had a terrible bearish reversal that engulfed the prior 4 trading days….this triggered red flags as the stock closed on the 10 day MA – our sell signal. Prior to that point that stock was moving higher and was well above its 10…