$GE Options Intelligence

🎯 SELL GE DEC 19 310/320 CALL SPREAD

I recommend a bear call spread because the current term structure shows that near-term implied volatility (IV) is fairly priced but overall IV rank is very high at 100%, indicating premium is expensive and favors selling premium strategies. The stock is trading at $292.00, below both the 50-day ($300.61) and 20-day ($297.78) moving averages, with a neutral RSI of 44.29 and bearish MACD, suggesting limited upside momentum near resistance. Additionally, recent analyst optimism and positive momentum have pushed max pain to $310, making the 310/320 call spread a good candidate to collect premium with defined risk. The January 22, 2026 earnings date is 48 days away, so using the December 19 expiration (14 days out) avoids earnings exposure but captures near-term time decay.

Sell GE Dec 19 310/320 Call Spread
Stock Price: $292.00 | Entry: Sell 310 Call at ~$2.00 bid, Buy 320 Call at ~$1.10 ask → Net credit ≈ $0.90

📊 Trade Metrics

• Max Profit: $90 per spread (credit received)
• Max Risk: $910 per spread (difference between strikes $10 - $0.90 credit)
• Breakeven: $310.90 (strike + net credit)
• Win Probability: Moderate-high (stock below 310 at expiry)
• Days to Expiration: 14

📈 Term Structure & Volatility Analysis

• Baseline 90-day Volatility: 23.1%
• Current IV Rank: 100% (very high, premium expensive)
• Next Expiration IV (Dec 19): ~24.4% market IV, clean IV ~22.4% (fair value but still high relative to baseline)
• Earnings Multiplier: 3.45x (high expected earnings volatility, but Dec 19 expiry avoids earnings)
• Calendar Spread Opportunity: Yes, with Jan expirations offering slightly higher IV
• Recommendation: SELL premium on near-term calls to capitalize on time decay and high IV

📈 Greeks & Volatility

• Delta (310 Call): ~0.13 (slightly OTM)
• Theta: Positive for seller, benefiting from time decay
• Vega: Negative for seller, benefits if IV drops or remains stable
• Put/Call Ratio: 0.24 (very bullish skew, call premium rich)

🎯 Why This Trade

The term structure shows that while IV is elevated, the near-term options are fairly priced relative to the 90-day baseline volatility, making selling premium attractive. GE’s technicals show resistance near 300, and the stock is currently at 292 with bearish MACD and neutral RSI, indicating limited near-term upside. The market maker max pain is at 310, aligning well with the short strike of the spread, increasing the probability of expiring worthless. Recent positive analyst coverage and strong aerospace revenue growth support a stable to modestly bullish outlook but capped near resistance. The December 19 expiry avoids earnings risk on January 22, allowing time decay to work in favor of the spread seller.

📊 Pro Analysis

• Current IV: 50.9% (high) vs Historical Volatility: 6.9%, confirming premium is expensive
• IV Rank: 100% (sell premium favored)
• Expected Daily Move: ±$9.36 (3.21%) supports wide strike selection
• Market Maker Max Pain: $310 (aligns with short strike)
• Technical: Price below 20-day and 50-day MAs, MACD bearish, RSI neutral
• Dividend: Ex-dividend on Dec 29, 2025, after this expiry, minimal impact on this trade

🔍 Earnings Date Check

Earnings on January 22, 2026; Dec 19 expiration is well before earnings, so this trade avoids earnings volatility risk.

💡 Trade Management

• Entry: Place limit order to SELL the 310 Call at $2.00 and BUY the 320 Call at $1.10 for a net credit of $0.90
• Target: Keep full credit if GE stays below $310 at expiry
• Stop: Consider closing if GE rallies above $315 before expiration
• Time Stop: Close 1-2 days before expiration to avoid last-minute gamma risk

🔒 Pricing Validation

• 310 Call intrinsic value: max(0, 292-310) = $0 (OTM)
• 320 Call intrinsic value: $0 (further OTM)
• Spread intrinsic value: $0 (both OTM)
• Net credit of $0.90 is above intrinsic value, valid credit spread

🔍 Market Overview

The Fed’s upcoming rate decision on December 10 and CPI data could add volatility, but currently, GE’s price action is consolidating below key moving averages. The aerospace sector shows strength with GE Aerospace’s strong revenue and reaffirmed earnings guidance, supporting a stable outlook. The dividend ex-date on December 29 is after this trade’s expiry, so no dividend-related price drop risk applies here. The put/call volume ratio of 0.24 signals bullish sentiment, but with IV at 100% rank, selling premium is prudent to capitalize on time decay and elevated volatility premiums.

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This trade offers a defined-risk, high-probability premium collection strategy aligned with current market conditions, technicals, and volatility structure. Confidence level is *moderate to high* given the high IV rank and technical resistance near $300, but risk is capped by the $10 wide call spread.