Summary
General Electric is moving forward with its turnaround strategy to restructure its businesses.
But the market looks unconvinced with decisions made by CEO John Flannery, and the stock has now dropped firmly below the $12 mark.
This is testing the patience of investors focused on GE’s dividend and the company’s potential for long-term upside.
Sideways trading trends suggest covered call options are still the best way to play GE’s negative stock trends while still capturing its 4.23% dividend yield.
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In a previous article on General Electric (GE), we asked readers to weigh in on the possibility that CEO John Flannery has taken his turnaround strategy to extreme and excessive levels. The contentious debate highlighted many of the concerns faced by long-term investors.
Interestingly, the market majority seems to be feeling the same way, as GE share prices have fallen below the $12 mark for the first time since 2009. Of course, this was the period which followed the 2008 financial crisis. This activity implies that there is a significant paradigm shift at work, and investors must take a more proactive stance in their positions in order to protect from further losses. Covered call options strategies work well in these types of environments and I will continue to position with this stance on GE over the next few months.
