$GE – on the watch for January bounce…rally?

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.

So…

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.

(click on the chart for a larger view)

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