Tuesday, March 16, 2010

Stock/Option Explosion: The GE Breakout on 52-Week Highs (GE)

Stock Assault 2.0 - Artificial Intelligence Stock Market Software

General Electric Co. (GE) is seeing a break-out.  Yesterday it was Goldman Sachs, today JPMorgan helping with comments on the conglomerate.  The prior 52-week high was $17.52 that was hit back on September 19 2009 after it went ex-dividend.  This morning shares opened up at $17.49 after a $17.29 close on Monday.  Now shares are trading at $17.65 and we have seen a high print of $17.68 this morning.

What is most impressive is that GE’s share volume today is through  the roof… At 10:31 AM EST we have seen 63 million shares trade hands versus an average daily volume of 73 million shares.

Also impressive is the stock options volume today.  We have seen over 20,000 of the MARCH-2010 $17.50 CALLS trade versus an open interest of 174,000+ contracts.  Based on the last trade, those only have to hit $17.77 for the trade to be profitable (before commissions and fees).

We have also seen almost 30,000 contracts in various strikes trade of the APRIL-2010 CALLS….

Stay tuned.  If today will hold, this is probably a breakout.  You know the old mantra… “Stocks hitting 52-week highs tend to keep hitting 52-week highs.”


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