Ge - Not Gm

[jcon]

First, can i assume that in this Finance section of TV, that we can talk about large multinational companies without having to directly relate them to Thailand? I mean, by now I think that we can assume that these issues would relate to Thailand, if not through some of the bank accounts of some members...

So GE - just read an interesting article:

http://seekingalpha.com/article/106445-gen...icle_sb_popular

At the end, the author makes a comment on "the mother of all bailouts."

Looking at that chart of GE shares, they hit a high in 2000 and never hit it again? Even in the 2002-2007 period of excess??

And the share of "GE Capital" in the profits at 42% in 2007? That can't be good for 2008/9, right?

Then I went all alexlah and thought about how much of a conspiracy it must be at the helm of GM and how connected they must be to, well, everyone.... then i wondered what would happen if GE were to 'fail.' Too big to fail? We know how much of a joke that phrase is now... it's a slippery slope.

I guess I have no point I think I just made a troll post. haha.

lannarebirth, what does that GE chart look like to you? How much implied volatility is in the 15-strike options?

[lannarebirth]

First, can i assume that in this Finance section of TV, that we can talk about large multinational companies without having to directly relate them to Thailand? I mean, by now I think that we can assume that these issues would relate to Thailand, if not through some of the bank accounts of some members...

So GE - just read an interesting article:

http://seekingalpha.com/article/106445-gen...icle_sb_popular

At the end, the author makes a comment on "the mother of all bailouts."

Looking at that chart of GE shares, they hit a high in 2000 and never hit it again? Even in the 2002-2007 period of excess??

And the share of "GE Capital" in the profits at 42% in 2007? That can't be good for 2008/9, right?

Then I went all alexlah and thought about how much of a conspiracy it must be at the helm of GM and how connected they must be to, well, everyone.... then i wondered what would happen if GE were to 'fail.' Too big to fail? We know how much of a joke that phrase is now... it's a slippery slope.

I guess I have no point I think I just made a troll post. haha.

lannarebirth, what does that GE chart look like to you? How much implied volatility is in the 15-strike options?

Huge amount of IV in most options right now. If I wanted the stock ; at 15ish I'd probably be selling the January 2010, 12.5 strike puts, take in a big premium, and if it drops to 12.5 before J '10 and the shares are put to you, your cost basis should be under 10. I havent checked the actual premiums on this stock, but those kinds of % numbers are in line with many I'm looking at)

My personal opinion is, most financials, if they survive, are going back to their 1994 breakouts. OCICBW.

Here's an example of selling puts to own stock:

http://www.learningmarkets.com/index.php/2...ut-options.html

Edited November 19, 2008 by lannarebirth

[jcon]

You use Interactive Brokers, correct? They allow you to sell puts naked?

thanks for the info lanna.

[lannarebirth]

You use Interactive Brokers, correct? They allow you to sell puts naked?

thanks for the info lanna.

Yes.t's allowed. If you haven't done it much previously you have to lie about your experience on the application. You can even do it in an IRA.