GE Investor Bets Wrong on Stock But Right on Put Options

(Bloomberg) -- General Electric rallied as much as 16 percent after announcing a new CEO but not all investors are rejoicing in today’s spike. One trader seems to have made an untimely bet Friday morning, selling a block of 6 million shares at $11.51 each.

While today’s short term opportunity loss from the share sale is unfortunate, at least that loss was partially offset by the 34 percent drop in of the 130,000 November 9th $11.50 puts that were sold in conjunction with the shares.

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