This is an update to the blog posted yesterday General Electric (GE) - Earnings Preview on Vol Pattern.
GE is trading $14.91 with IV30™ down 1.4%. The LIVEVOL™ Pro Summary is below.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJZjmpnSE-H5tY47mOKJ99XRGtrPt9KrdyoN9g2WVZRhUuZCAQbdp4JLl8fKBebm9ceLKHCujWQYzrVAMJFDV_azWl9ZzMUuD11Zu971EyUJv4IKpZH-QZCsq3qhwqdqy-NCA72mEi0ZqF/s400/ge_summary_update.gif)
In yesterday's article I noted that:
GE has followed a consistent pattern for seven out of the last eight earnings starting with the 10-10-2008 cycle and ending with the last earnings cycle on 4-16-2010. Specifically, a straddle sale at the close on the day of earnings and a purchase back the day after was a winner seven times. Further, five out of the last five times have been winners.
GE had earnings last night, the Options Tab today (after earnings) is included (click to enlarge).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtc90qcDEi5Ri0ZuCsRSmE-ykvFmcBczeLU45i6yOJfLIqBKM4WBWDGd2thcPT1gCgcw05tNb287dJIneV3chrF26eJdzUvTxjmb5ybNMctgp4fTB0kp7d7H7UqdVBSj6o2FYYTFhtGrJC/s400/ge_options_update.gif)
We can see the ATM straddle is now worth $0.26. Yesterday, the straddle was worth $0.57. The one day trade would have turned a 54% profit ex-commissions. The updated earnings and dividends stats are included (click to enlarge). This makes six in a row for GE.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuM5rVlSuB6Mv_wS18rK2_Aw8SUR9vtkuOtHLH6xCddQvwPe51djilY57rrQNO-2Uj_m6zXmAcrafW386xiLE4pYyeMIb4VVAaM1s44cliaD-reLiJwPBR1kNSDgHe0OuqMgvX8d5bjALu/s400/ge_ed_stats_update.gif)
The price action in GE is a little too bearish for my liking so I am doing the close on the trade early. There is certainly a good chance of a pin and therefore closing this straddle for < $0.05 (rather than $0.26), but I think there's also a chance it goes < $14.50. A fun little bet could be to take $0.02 from the $0.31 win and buy the July 14 puts. You never know...
This is trade analysis, not a recommendation.
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