Shares of General Electric (GE, news, chart, volatility) are down $1.45, or 5.2 percent, to $26.71. AP is reporting that the stock slide was triggered by worries over a credit card unit sale. Citing analyst Nicholas Heymenn of Sterne Agee, “investors believed GE would sell its credit card business this summer. ‘People are looking around asking, Is GE going to get this done.’” Trading in the options market seems to reflect some deeper concerns. Volume is running seven times the usual, with 370,000 GE puts and 273,000 calls traded on the day. Implied volatility is up from 38 to 58, or up 53 percent, indicating that the options market is priced for the volatility in GE shares to continue going forward.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.