Giant spread in GE as a defensive position is adjusted
Giant spread in GE as a defensive position is adjusted. Shares down 27c to $12.93 and 42.5K Jul 12 - 14, 2X1, put ratio spreads sold at 52c. The 42.5K Jul 14 puts match a block opened for 54c on 5/23 (rolling out of Jun 14 puts at 29c with the stock at $14.36). GE dropped 11.6% since that time and the 12-strike puts are now ITM and being covered at $1.16 today to monetize a $2.6M profit - a new position in OTM Jul 12 puts, twice the size, is being opened for 32c per contract and the adjustment expresses concerns that shares will fall further in the month ahead. The company is due to report earnings 7/20, the same day the options expire.