Call Options on GE on 4/23/2015

General Electric Company (GE) operates as an infrastructure and financial services company worldwide.

The company’s Power and Water segment offers gas, steam and aeroderivative turbines, nuclear reactors, generators, combined cycle systems, controls, and related services; wind turbines; and water treatment services and equipment.

Its Oil and Gas segment provides surface and subsea drilling and production systems, equipment for floating production platforms, compressors, turbines, turboexpanders, reactors, industrial power generation, and auxiliary equipment. The company’s Energy Management segments offers plant automation hardware, software, and embedded computing systems, including controllers, embedded systems, advanced software, motion control, operator interfaces, and industrial computers. Its Aviation segment offers jet engines; aerospace systems and equipment; and replacement parts and repair and maintenance services for commercial and military aircraft, marine applications, and executive and regional aircraft.

The company’s Healthcare segment provides medical imaging, software and information technology (IT), patient monitoring and diagnostics, drug discovery, biopharmaceutical manufacturing technologies, and performance improvement solutions.

Its Transportation segment offers freight and passenger locomotives, and diesel engines for rail, marine, and stationary power applications; railway signaling and communications systems; underground mining equipment; motorized drive systems; IT solutions; and replacement parts and value added services.

The company’s Appliances & Lighting segment manufactures home appliances; and lighting products for commercial and industrial applications. Its GE Capital segment offers commercial loans and leases, fleet management, financial programs, credit cards, personal loans, and other financial services. 

Shares have formed a bullish "flag" following a series of positive developments for the company. The firm plans to spin off its financial business as well as selling other assets. A shares buyback and extra dividend is expected from the company. Higher share prices are expected for this stock.

52-Weeks Trading Range: $23.41 - $28.68

Entry Point: $26.75

Trade Buy 1 May $26.00 Call at $1.00 For a net debit of $1.00 Profit/Loss Analysis Breakeven at $27.00 Maximum profit is unbounded Maximum loss is ($100.00) at strike of $26.00 Closing Summary Sold 1 May $26.00 Call at $1.50

Position closed on 5/4/2015 at price of $1.50 with a 50.00% gain in 11 days.

Updates

5/4/2015 9:43:19 AM

We are taking profits on GE $26 call option.

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