I have decided to take a small speculation on GE. As you guys already know I am bullish on GE which is why I continue to hold my 10 short put contracts that I sold for 1.56 per contract and are currently trading at $0.50 leaving me in the money by $1. I plan to hold until they expire in September or they are trading at $0.2 or below I will buy them back, which ever comes first.
Today I initiated a position less then half my normal size 4 call contract on GE at the $13 strike with August expiration for $0.39 a contract. This is a play for earnings only and in my plan is to sell it if I am not in the money by the first 30 minutes of trading after they report when the market opens, then I will sell. Initially I am risking $156, but I think my actual down side is about half that, $78. I am looking for a 2-3X return.
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