Options Update: General Electric (GE), CBOE VIX & Washington Mutual (WM)
General Electric (GE)
GE volatility is at six-year highs into EPS and outlook. GE is expected to report Q4 EPS of $.68 on January 18th according to Thomson First Call.
GE January 32.5 straddle is priced at $1.46. GE February option implied volatility of 34 is above its 26-week average of 25, suggesting larger risk.
CBOE VIX
CBOE VIX is up 3.81 to 28.19. There is concern if the recession will be mild, moderate or deep.
Washington Mutual (WM)
WM January options suggest 16% price move on EPS and outlook.WM is down $.65 to $12.76 and will report EPS after the close tonight.
WM January 15 straddle is priced at $2.05. WM February option implied volatility of 139 is above its 6-month average of 55, suggesting larger risk.
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About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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