General Electric Company (NYSE:GE) Option Puts
Provides 150% Profit After The Earnings Call!
by Ian Harvey
January 23, 2018
General Electric Company (NYSE:GE)
Here is an update of General Electric’s winning options put trade before reporting earnings. This options trade was recommended, to “Cut-To-The-Chase” Members of Stock Options Made Easy, on Thursday, January 18, 2018 -- in the article ““Cut-to-the-Chase” Recommendations - Week Beginning Monday, Monday, January 15, 2018”; which produced excellent potential profits of 150% within a couple of days of executing the trade!
YOU NEED TO BE IN TO PROFIT!The Recommendation……
The Dow Jones Industrial Average continues to flirt with the 26,000 level, But with a possible government shutdown looming, volatility reappearing and the U.S. dollar careening ahead of a Federal Reserve policy meeting later this month, the market is looking incredibly fragile here.
And many of the big-cap blue-chips are rolling over amid profit taking – and the industrial conglomerate General Electric Company (NYSE:GE) is leading the list.
The company will next report results on Wednesday, January 24, before the bell. Analysts are looking for earnings of 28-cents-per-share on revenues of $32.7 billion. When the company last reported on Oct. 20, earnings of 29 cents missed estimates by 20 cents on an 11.5% rise in revenues.
General Electric shares have reversed lower over the last few trading sessions, returning to lows set in November and December as investors react negatively to news the company will take a larger-than-expected write down related to its legacy reinsurance business.
** OPTION TRADE: Buy the GE MARCH 2018 17.000 PUT at approximately $0.60.
General Electric recently began a thorough review of its insurance obligations, and the results were worse than expected, leading to a $9.5 billion pre-tax charge. This outcome caused GE stock to plummet 13.3% last week, its worst weekly performance since the Great Recession.
The massive decline in GE's stock price knocked more than $20 billion off its market cap.
GE had telegraphed the fact that the insurance review would lead to a sizable special charge, but the ultimate size of that charge was significantly larger than analysts and investors had expected.
The bad news on the insurance front brought out the GE bears in full force. Deutsche Bank analyst John Inch warned that General Electric faces a "cash crunch" and could be forced to cut its dividend again, raise equity, or both.
Meanwhile, Cowen analyst Gautam Khanna repeated his contention that GE stock could be worth as little as $11 if the company were broken up -- one option management floated -- after accounting for its debt and pension liabilities.
There's no doubt that General Electric faces serious challenges right now. Market conditions for the power business may not improve anytime soon. GE Capital needs to rebuild its balance sheet. Several smaller units need to be sold or spun off.
At the time of the recommendation the stock was trading at $17.30.
On Monday the stock hit a low of $15.80.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 150% within a couple of days.
ACTION TO TAKE…….
"YOU NEED TO BE IN IT TO WIN IT!"
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……