GE To Double By 2011?

Do options traders see a double for GE stock? Well, maybe not a double, but perhaps a gain of 40% by next year.

You may recall that back in January, options traders were furiously placing bearish bets on the demise of General Electric, the parent company of CNBC. They couldn't get enough of the Jan 10 2.5-strike puts, gobbling them up as if it were a sure bet.

GE stock never did get there, but it got way too close for many investors, briefly dipping below $6 at one point, before rally back up to $16.

Now, the opposite appears to be the case. In a massive trade hitting the tape today, nearly 145,000 contracts of the Jan 11 22.5-strike calls traded hands. At $0.75 a piece, this trade won't payoff unless GE stock is above $23.25 by January expiration in 2011.

Let's hope options traders are two for two.

Questions, comments send them to us at: optionsaction@cnbc.com

Contact Options Action

  • Showtimes

    Fridays, 5:30p ET
    Saturday, 6a ET
    Sunday, 6a ET
  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

Sponsored Related Links

More on thinkorswim by TD Ameritrade

  • Make sure you’re always keeping up with the market with up-to-the-minute news and breaking stories. Move on possible breakout stocks and options with potential opportunity. Plus, get in-depth analysis on futures and forex in one seamless, integrated experience. Join TD Ameritrade and trade commission-free for 60 days + get up to $600 cash.