Robert Weinstein

Unusual Options Activity Review: Thursday

Not a big surprise with GE earnings about to come out in about 12 mins from the time I write this.

I been writting puts for Feb and Mar as I feel it doesnt matter what they report the stock will go up. There just isnt any other AAA stocks with such a wonderful PE and dividend even if it both get cut in half.

GE is a great company and in the next few months there will be a lot of people wishing they didn't panic out of their stock.

This says a lot that I am bullish with GE as I am NOT a value investor and short over 95% of my trades / investments.

Tuesday Options Update: GE, STT, NTRS, BAC & XLF

Wilkinson good article this week. Especially GE.

With Buffet buying in at a much higher price it makes you wonder who 'knows more'??

I have been an active seller of puts for the last few trading sessions and GE appears to be a real value. Its a AAA rated stock with a good dividend and a good PE. When you strip GE of half its PE and count in a dividend cut by 50% it STILL appears to be a great value to me.

My 14 feb puts and now today my 13 puts are in the money and if I get GE stock put to me with a net cost of 13.30 and 12.35 I will still feel very comfortable unless something negative happens with the financial reports. Market panic does not make me worry and in fact it sometimes when done right gives you a chance to buy something on sale.

Dividend or AAA Debt Rating: Which Will GE Choose?

I guess your name says why you own GE. Lets take for granted that your right about GE and say that they cut it in half.

Lets for good measure say that GE profit drops in half as well.

What is your net result after?

You have a AAA rated stock that has been really beaten down that has a PE of about 13 and a dividend of 4.5%

In my book you still have a great investment. Still worried that things could get worse and want to protect yourself? No problem, write some LEAPS or longer term options to help protect against some downside. (sorry, no such thing as risk free money unless you want to bring it down to the bank)

I for one have been selling puts in GE as I think the price is depressed due to fear which I think will go away.

What is more strange is that someone like me is a net long via options as I short over 95% of my trades and GE is the only stock I am long with. There just simply is way too much fear in this stock for me not to want to buy it as the current facts and even the unknown of the earnings report say that if it does go lower it will have a very good chance to go back up quickly in my opinion.