Call is bottom picking as the tax-selling season ends – GE look like a prime candidate for a bounce.
Although depressed all year and in some kind of fundamental trouble (not my concern), GE remains a big name and, technically speaking, it has tested its recent lows and so far is surviving the test.
It’s probably worth a gamble, with the recent lows as a stop loss. This is a play I want to go my way right away or I’m going away.
For a quick, cheap scalp, at the moment, the Jan 17 call, which gave a buy signal today at 64 cents (see the 10-minute chart on the right of the chart panel below) is at 68-cent ask with the stock at $17.46. For what it’s worth that is in-the-money option. A bounce is going to make some money, and a rally is likely to make a decent profit.
Ignoring the chart, the better buy may be at the end of the day for the option play, and next year’s open for the stock itself.