GE Aerospace Plummets 2.8% Amid Sector Turbulence: What’s Fueling the Selloff?

Summary
• GE Aerospace (GE) slumps to $290.08, down 2.8% from its 2025-12-01 open of $295.00
• $53M North Carolina expansion and GEnx engine contracts fail to offset broader sector weakness
• RTX, the sector leader, also declines 2.65%, signaling systemic pressure

GE Aerospace’s sharp intraday drop has ignited a firestorm of speculation, with investors grappling to reconcile its recent expansion announcements and robust engine orders against a broader aerospace sector slump. The stock’s 2.8% decline—its lowest since $288.98—has drawn attention to technical indicators and options activity, while sector peers like RTX mirror the downward trend. With the 52-week range spanning $159.36 to $316.67, the move raises urgent questions about near-term catalysts and positioning.

Sector-Wide Downturn Overshadows Expansion Optimism
Despite GE Aerospace’s recent $53 million expansion in North Carolina and a flurry of engine contracts—including Turkish Airlines’ GEnx order—the stock’s 2.8% drop reflects a broader aerospace sector selloff. The sector’s decline, led by RTX’s 2.65% retreat, suggests macroeconomic or regulatory headwinds are eclipsing company-specific positives. While the West Jefferson facility’s expansion aims to boost LEAP engine production, the market appears to be discounting near-term demand amid concerns over global aviation recovery and input costs. The stock’s intraday range of $288.98–$296.40 underscores volatility, with the 200-day moving average at $251.28 offering no immediate support.

Aerospace & Defense Sector Slumps as RTX Dips 2.65%
GE Aerospace’s 2.8% decline aligns closely with the sector’s broader malaise, as RTX, the industry bellwether, also fell 2.65%. This synchronized drop points to systemic factors—such as rising interest rates, geopolitical risks, or supply chain bottlenecks—rather than isolated company issues. While GE’s expansion and engine orders are bullish, the sector’s collective retreat suggests investors are prioritizing caution. The lack of divergence between GE and RTX highlights a shared vulnerability to macroeconomic shifts, with both stocks trading below their 52-week highs.

Options Playbook: Capitalizing on Volatility with GE20251205P275 and GE20251205C290
• 200-day average: $251.28 (far below current price)
• RSI: 41.57 (oversold territory)
• MACD: -2.14 (bearish divergence)
• Bollinger Bands: Lower bound at $287.80 (near current price)

Technical indicators suggest a potential rebound from oversold levels, but the bearish MACD and low RSI hint at lingering pressure. For short-term positioning, two options stand out:

• GE20251205P275 (Put Option):
- Strike: $275, Expiry: 2025-12-05
- IV: 34.82% (moderate), Leverage: 676.53%
- Delta: -0.0789 (low sensitivity), Theta: -0.0075 (slow decay), Gamma: 0.0124 (moderate sensitivity)
- Turnover: $2,757 (liquid)
- Payoff (5% downside): $14.08 per contract
- This put offers explosive leverage if GE breaks below $287.80, with manageable time decay.

• GE20251205C290 (Call Option):
- Strike: $290, Expiry: 2025-12-05
- IV: 27.67% (reasonable), Leverage: 67.65%
- Delta: 0.5509 (moderate sensitivity), Theta: -1.4796 (rapid decay), Gamma: 0.0420 (high sensitivity)
- Turnover: $39,145 (highly liquid)
- Payoff (5% downside): $0 (out-of-the-money)
- While the call is at-the-money, its high gamma makes it responsive to a rebound above $290.08.

If $287.80 breaks, GE20251205P275 offers short-side potential. Aggressive bulls may consider GE20251205C290 into a bounce above $290.08.

Backtest GE Aerospace Stock Performance
Your requested back-test has been completed. Key highlights:• Time span: 2022-01-01 to 2025-12-01 • Entry rule: buy GE at the close on any day its close-to-close return ≤ −3 % • Risk control (chosen by Aime to limit tail risk and speed capital turnover): – 10 % take-profit, 8 % stop-loss, maximum holding 20 trading days • Core results: total strategy return 44.7 %, annualised 11.3 %; maximum draw-down 31.6 %; Sharpe ratio ≈ 0.60.For an interactive breakdown of trades, equity curve and distribution statistics, please open the module below.

Act Now: GE Aerospace at Pivotal Crossroads—Bullish or Bearish?
GE Aerospace’s 2.8% drop has created a critical inflection point, with technical indicators and options activity pointing to a volatile near-term outlook. While the stock’s expansion plans and engine contracts are fundamentally sound, the sector’s synchronized selloff—led by RTX’s 2.65% decline—suggests macroeconomic risks remain unaddressed. Investors should monitor the 200-day average ($251.28) and key support/resistance levels ($287.80–$301.88). For those seeking directional bets, the GE20251205P275 put offers high leverage if the selloff intensifies, while the GE20251205C290 call could benefit from a rebound. With the sector in turmoil, decisive action is warranted—position now or risk being sidelined by volatility.