Schaeffer's Options Update: A General Electric Co. Synthetic Long

CINCINNATI--(Business Wire)--
Option activity is brisk on Dow Jones Industrial Average component General
Electric Company (NYSE: GE) today. Of particular interest is volume at the
stock's January 2010 10 call and put, which have each seen more than 22,000
contracts cross the tape. Open interest is heavy at these strikes, with the
January 2010 call sporting 108,688 contracts, while the January 2010 put has
22,881 contracts open.

Taking a closer look at this volume reveals some unusual option activity. On the
January 2010 call, 21,500 contracts traded in nine blocks between 10:52 a.m. and
11:17 a.m. Eastern time on the Chicago Board Options Exchange (CBOE). These
blocks crossed at the ask price of $1.83, and were marked spread. At roughly the
same times and on the same exchange, 10 blocks totaling 21,500 January 2010 puts
traded at the bid price of $1.20, and were marked spread. Given this data, it
would appear that we are looking at a synthetic long position on General
Electric.

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Schaeffer's Investment Research
Joseph Hargett, 513-589-3800
jhargett@sir-inc.com

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