The GE mess continues.
Most of you know that I fought a long battle with a net long equity position with General Electric (GE - Get Report) for most of 2017 into 2018. It took every skill I had, and as well as some out-sized risk taking ( I got run over twice) just to get my net basis down to where I could get out with my tail in one piece. I took leave of this name at 14.85 in late April after quarterly earnings hit the tape. The name required far too much of my time and energy just to protect me from myself.
CEO John Flannery seems to me to be an earnest guy. I do trust him to, if not turn GE around, to be the best leader available who is also willing to try. He speaks today at the last day of the Electrical Products Group investor conference in Longboat Key, Florida. Will he say anything of importance? That much is unknown, but chances are likely that the stock moves at some point today, and now you know why. My belief is that the stock price is at a crossroads.
On an 18 month chart, GE would appear to have room to run, however, running a static 2018 Fibonacci model (red Fibs) would suggest that the recent pop might already be out of gas unless there is some unexpected cash generation that I do not see about to hit the news cycle.
I am not interested in reacquainting myself with this name. I feel that the stock's recent success has as much to do with surging oil prices as any Wabtec (WAB - Get Report) deal. Personally, I would not consider the sale of any puts or calls with strike prices inside of a range of 11/19, or sporting expiration dates further out than two months. There is simply almost no premium to be paid for options contracts that fit my criteria. Therefore, I will find another way to risk losing my hard earned dough.