Active trading in GE options this morning ahead of tomorrow’s earnings. Shares are trading near $12.50, off about 50cents, and a large bearish risk-reversal traded on the ISE 14500 time, in which a customer sold Feb 14calls to buy Feb 10 puts for a net debit of 3cents. Data suggests the customer is closing on at least one strike, possibly in a risk-control measure ahead of tomorrow.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.