In the spirit of yesterday's post on UNG, here's a little update on one of my favorite daytrading and swing trading equities. . .GE.
Thanks to Dave for suggesting that yesterday's post was responsible for today's huge pop in UNG, although there are no doubt some naysayers who would disagree.
Currently on a swing trade BUY signal via the majority of my Dirty Dozen system components, GE also offers some nice low risk exposure plays including a simple Jul 13s buy/write that will yield .53 or 4% for 37 days of exposure.
Your break even on this play is 12.48, so you've got over a buck's worth of insurance to the downside. Pretty good odds IMHO.
On the other side of the coin, for the more risk tolerant, selling the Jul 12 puts will yield .33. Worst case scenario, GE craters and you get the stock put to you at 11.67, which would reflect mid-April price levels.