4 Trade Ideas for General Electric: Bonus Idea

• Posted by Greg Harmon
• on October 31st, 2022

Here is your Bonus Idea with links to the full Top Ten:

General Electric, $GE, comes into the week approaching resistance and just beneath the 200 day SMA. It has a RSI rising into overbought territory in the bullish zone with the MACD positive and moving up. The price is following the Bollinger Bands® higher. There is resistance at 81 and 84.75 then 88.25 and 93. Support lower comes at 76.25 and 73.50 then 71.75. Short interest is low under 1%. The stock pays a dividend with an annual yield of 0.41% and has traded ex-dividend since September 26th. The company is expected to report earnings next on January 23rd.

The November options chain shows big open interest from 75 to 70 on the put side and at every $5 strike on the call side from 70 to 90. In the December chain open interest builds from 75 to a peak at 60 on the put side and is much bigger form 80 to 100 on the call side. The January chain shows big open interest from 90 to 55, biggest at 75, on the put side and building from 75 to a peak at 110 on the call side. Finally, the March chain has open interest spread from 70 to 60 in the puts and focused at 80 and 100 in the calls.

General Electric, Ticker: $GE

Trade Idea 1: Buy the stock on a move over 81 with a stop at 76.

Trade Idea 2: Buy the stock on a move over 81 and add a November 76/73 Put Spread (80 cents) while selling a December 90 Call (60 cents).

Trade Idea 3: Buy the November/January 85 Call Calendar ($2.30) while selling the December 70 Put ($1.20).

Trade Idea 4: Buy the January 65/85/90 Call Spread Risk Reversal (20 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with just one trading day left in October, saw equity markets put in a strong week for the second week in a row.

Elsewhere look for Gold to continue its pullback while Crude Oil consolidates. The US Dollar Index looks to pullback in the uptrend while US Treasuries bounce in their downtrend. The Shanghai Composite looks to continue lower while Emerging Markets remain in a downtrend.

The Volatility Index looks to continue lower and only slightly elevated making the path easier for equity markets to the upside. Their charts are looking stronger on the shorter timeframe, especially the IWM and SPY. The QQQ is only slightly weaker. All three look stronger on the weekly timeframe. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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