GE Aerospace (NYSE:GE) stock is 1.7% higher to trade at $317.11 at last glance, enjoying Wall Street's rally. The equity sports a 70.6% year-over-year lead and isn't too far off its Feb. 25, record high of $348.48. What's more, shares have managed to cling to a small year-to-date gain despite a late-March pullback, which sent the stock to its lowest level since September. Now, a contrarian sentiment signal is sounding in GE's options pits that could bring even more gains.
The equity's 10-day buy-to-open put/call ratio just hit the 90th percentile and crossed over 1.0. According to Schaeffer's Senior Quantitative Analyst Rocky White, in the last three years that’s occurred five other times. The stock has averaged a 7.3% return 21 days later with a 60% success rate. From its current perch, this suggests GE may be back above the $340 within a month.
Honing in on this options data, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) GE sports a 10-day put/call volume ratio of 1.58, which sits higher than 98% of annual readings. Should this pessimism begin to unwind, it could trigger more tailwinds.
More upgrades could be on the horizon as well. This is per the three covering brokerage firms that maintain a "hold" or worse rating on the equity.
