Anatomy of a Trade – $GE Whiz With

by CC December 30, 2015 12:19 pm • Commentary

At the end of November we detailed a trade idea in GE that looked to finance upside calls in February with the sale of Dec31st calls of the same strike. This is a strategy we really like into year end as both implied vol and actual vol in the market tends to collapse in the shortened holiday trading weeks (we adjusted a similar trade in QCOM yesterday). As the market has drifted higher over the past trading days that’s exactly what has happened and GE is near our chosen strike. To recap here was the original trade idea and rationale: