Disclaimer:The trades discussed in this blog reflect the author's personal strategies and decisions. These are not financial advice and should not be considered recommendations to buy, sell, or hold any financial instruments. The author is not a licensed financial advisor. Options trading carries significant risk, and readers should perform their own research or consult a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.
GE Aerospace (GE) is looking super oversold right now, with an IV rank above 95%, so I sold a put on it.
The Trade
Here's the trade:
For reference, here is the current price chart of GE:
Yes, today GE went into dead-cat-bounce mode with a +5% move, but my breakeven price at about $248.49 is quite far from the current price, so I'm comfortable with this setup.
For the record, I'm OK with either rolling this or doing the wheel strategy if things go south for me.
Gianluca Longinotti is an experienced trader, advisor, and financial analyst with over a decade of professional experience in the banking sector, trading, and investment services.
Gianluca LonginottiFinance Writer - Traders Education