General Electric Option Activity: A Big Bet Down

Big money traders are having a field day with General Electric (NYSE:GE) options.  Today someone purchased 5,500 November 16 General Electric (NYSE:GE) puts for 67 cents and sold 5,500 GE November 13 puts for 14 cents. Volume was more than twice open interest in both strikes and the transaction resulted in a net debit of $0.53.

TRADERS WANTS GE TO FALL
Via theStreet.com -- Today's put spread trade will generate a maximum profit of 466% if GE closes at or below $13 on expiration. Another investor sold 3,500 November 17 calls for 93 cents, also reflecting an expectation the shares are headed lower. Volume was below open interest in the strike.

The next scheduled event that could serve as a catalyst for the shares is the release of third-quarter earnings before the market opens Oct. 16.

Options volume in GE was about evenly split between calls and puts today, marking a contrast with the more bullish pattern over the past 20 days when calls outnumbered puts by 2 to 1. 

Time will tell if these traders are right about a possible decline with GE shares. One thing is for sure, there is a ton of cashing riding on the GE Options for October and November (data thanks to Yahoo Finance): 

Strike Symbol Last Chg Bid Ask Vol Open Int 9.00 GEWJD.X 7.45 0.65 7.55 7.65 33 363 10.00 GEWJF.X 7.05 0.27 6.55 6.65 10 50 11.00 GEWJI.X 6.05 0.05 5.55 5.65 10 161 12.00 GEWJA.X 4.50 0.55 4.55 4.65 164 806 13.00 GEWJM.X 3.60 0.55 3.60 3.65 261 4,766 14.00 GEWJN.X 2.70 0.40 2.68 2.71 2,437 23,532 15.00 GEWJH.X 1.83 0.32 1.81 1.84 3,347 67,283 16.00 GEWJQ.X 1.10 0.23 1.09 1.11 10,503 36,528 17.00 GEWJR.X 0.56 0.16 0.55 0.57 32,380 100,504 18.00 GEWJO.X 0.26 0.07 0.24 0.26 11,435 58,036 19.00 GEWJB.X 0.11 0.03 0.10 0.11 4,740 24,076 20.00 GEJI.X 0.04 0.02 0.04 0.05 2,576 7,040 21.00 GEJU.X 0.03 0.00 0.02 0.03 167 1,775 22.50 GEJZ.X 0.01 0.00 0.01 0.02 11 239

Strike	Symbol	Last	Chg	Bid	Ask	Vol	Open Int
9.00	GEWVD.X	0.01	0.00	N/A	0.01	110	316
10.00	GEWVF.X	0.02	0.00	N/A	0.02	300	3,915
11.00	GEWVI.X	0.02	0.00	0.01	0.02	420	3,994
12.00	GEWVA.X	0.04	0.01	0.02	0.04	227	22,036
13.00	GEWVM.X	0.05	0.00	0.05	0.06	3,317	23,365
14.00	GEWVN.X	0.12	0.03	0.11	0.13	5,286	32,016
15.00	GEWVH.X	0.26	0.09	0.25	0.26	9,430	60,189
16.00	GEWVQ.X	0.53	0.16	0.52	0.54	22,756	69,914
17.00	GEWVR.X	0.97	0.22	0.98	1.00	14,372	48,407
18.00	GEWVO.X	1.73	0.36	1.67	1.69	1,824	6,608
19.00	GEWVB.X	2.57	0.41	2.52	2.55	1,039	1,623
20.00	GEVI.X	3.50	0.57	3.45	3.50	462	612
21.00	GEVU.X	4.20	0.45	4.40	4.50	13	224
22.50	GEVZ.X	6.05	0.70	5.90	6.00	14	121
25.00	GEVJ.X	8.30	0.00	8.35	8.50	0	20

Strike Symbol Last Chg Bid Ask Vol Open Int 14.00 GEWKN.X 2.74 0.91 2.89 2.93 239 66 15.00 GEWKH.X 2.10 0.34 2.12 2.15 1,407 1,621 16.00 GEWKQ.X 1.50 0.20 1.47 1.49 608 1,510 17.00 GEWKR.X 0.97 0.14 0.94 0.97 7,861 6,723 18.00 GEWKO.X 0.57 0.10 0.57 0.60 1,633 5,492 19.00 GEWKB.X 0.34 0.05 0.33 0.35 580 2,916 20.00 GEKI.X 0.19 0.04 0.19 0.20 441 1,764 21.00 GEKU.X 0.11 0.03 0.11 0.12 411 568

Strike	Symbol	Last	Chg	Bid	Ask	Vol	Open Int
14.00	GEWWN.X	0.33	0.07	0.33	0.34	1,205	1,886
15.00	GEWWH.X	0.56	0.13	0.55	0.57	2,100	3,530
16.00	GEWWQ.X	0.90	0.19	0.89	0.90	8,013	2,075
17.00	GEWWR.X	1.41	0.30	1.37	1.39	2,097	2,003
18.00	GEWWO.X	2.00	0.33	1.99	2.02	178	1,996
19.00	GEWWB.X	2.88	0.49	2.75	2.78	303	860
20.00	GEWI.X	3.80	0.55	3.60	3.65	60	383
21.00	GEWU.X	4.55	0.80	4.50	4.60	30	72