As we reported back in early March put buying in GE has been abnormally heavy. We’re seeing the trend pick up steam this week as the put/call ratio in GE rises over 3:1. Put buyers have purchased almost 75,000 of the April $10’s. Buying in the options was at a 30:1 ratio today. Someone is betting on at least a 10%+ drop in GE heading into earnings.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.