EOT Trade Alert February 7, 2014

| February 7, 2014

February 7, 2014

Trade Alert:

Buy GE February 2014 $25 Calls at $0.45 or better

Company Background:

General Electric (GE) is one of the largest industrial and financial services companies in the world.  The blue chip company has a role in virtually every aspect of the global economy.

Short-Term Catalyst:

GE’s performance over the last month has been a huge disappointment.  But the industrial and financial giant has simply fallen too far too fast and it’s due to bounce back.

Right now GE is back at support of the uptrend and the 200-day moving average.  It’s poised to make a quick run higher over the next few weeks.

I’m looking for GE to climb to $26 or $27 and erase between 50% to 78.6% of the drop from 12/31/13 to 2/3/2014.

Let’s grab call options on GE now to profit from the rebound in this industrial bellwether.

Trade Details:

Underlying Stock Symbol: GE
Current Bid-Ask Price: $0.53 – $0.55
Option “Buy Up To” Price: $0.60
Break-Even On Stock At Expiration: $28.60
Maximum Risk Per Contract: $60

Exit Strategy:

GE is trading at $27.06 per share.  Resistance levels will be at $26.63 and again at $27.25.  Remember, we want this stock to move higher.  Support levels will be at $24.88 and $24.50.  Conservative investors should look to exit at the first support or resistance level.  Aggressive investors may want to hold for a bigger move.




Category: EOT Trade Alert

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