DailyPlay – General Electric (GE) – March 23, 2022

View GE Trade

Strategy Details

Strategy: Call Credit Spread

Strategy Direction: Bearish

Details: Sell to open April 29, 2022 $95/$97 Call Vertical @ $0.96 Credit

Trend Continuation Signal: This is a bearish strategy on a stock or ETF that is experiencing a bearish 6M trend. 

1M/6M Trends: Bullish/Bearish

Technical Score: 5/10

OptionsPlay Score: 110

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade.

Investment Rationale

GE bottomed before the SPX did, but has also already reached a daily Setup +9 count while also sits stopping against its Propulsion Exhaustion level at $96.09. Getting a few closes above $96.09 would up the odds for another leg higher to near $107, so we wouldn’t want to be short for that (i.e., we’d likely exit the trade if $97-ish is hurdled). On the downside, if we do see a pullback from here, we’d look to cover most if not all of this spread if price gets to near $88.50 (the newest bearish Propulsion Momentum level (highlighted in yellow).