1 result for month: 02/2013


Trading GE

We have been using a combination of puts, calls and stock ownership to trade around a position in GE. So far this year we are up $350 on our little position. The current position is short 5 weekly 25.5 puts, expiring this Friday. Right now, GE is trading at $23.22. This is ITM (in the money) - so we would own 500 shares of GE at the close Friday if the stock price stays below $25.50. This would require $12,750 cash in an account without the use of margin. We have made about 2.7% on our money so far this year, or close to 1.5%/month.What now?The chart shows GE over the last month or so. You can clearly see the price jump after a good earnings report. I ...