On CNBC’s “Options Action,” Tony Zhang said General Electric Company (NYSE:GE) is starting to break out. He saw a fairly large bullish options trade in the name on Wednesday and the options volume was two times the average daily options volume. Calls outpaced puts by about 4.5 to 1.
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During the session, Zhang noticed a purchase of 50,000 contracts of the January $14 calls for a dollar. A trader laid out $5 million in premium to bet that General Electric will be at least $15 at the January expiration, which is around 11% above the closing price on Wednesday.
