GE Aerospace Plummets 3.16% Amid Sector-Wide Jitters: What’s Fueling the Selloff?

Summary
• GE Aerospace (GE) trades at $282.64, down 3.16% from $291.86
• Intraday range spans $282.15–$293.28 with 0.19% turnover
• $362M settlement for 2017 guidance overestimation and $300M BETA partnership drive headlines
• RSI at 38.8 (oversold) and MACD at -3.35 (bearish divergence) signal technical pressure

GE Aerospace’s sharp intraday decline has ignited urgency among traders as the stock breaches key technical levels. With the aerospace sector showing mixed signals and defense procurement news dominating headlines, investors are scrambling to decipher whether this selloff reflects broader industry headwinds or GE-specific catalysts. The stock’s 52-week range of $159.36–$316.67 and current 36.3x P/E ratio add layers of complexity to its near-term outlook.

Settlement Fallout and Strategic Shifts Spur Volatility
GE’s 3.16% drop is driven by two key catalysts: a $362M settlement for overestimating 2017 guidance and a $300M investment in BETA Technologies for hybrid-electric aircraft. The settlement, tied to Power segment underperformance, reopens scrutiny over past earnings reliability. Meanwhile, the BETA partnership, while strategic, introduces short-term uncertainty as investors weigh the financial commitment against long-term aerospace electrification trends. These developments, coupled with sector-wide defense budget shifts, have triggered a liquidity-driven selloff.

Aerospace Sector Splits as Boeing Gains, GE Slumps
While GE tumbles, Boeing (BA) edges up 0.06%, reflecting divergent investor sentiment. Boeing’s recent KC-46A tanker contract wins and ongoing F-15EX production provide near-term visibility, contrasting with GE’s exposure to slower-moving defense modernization programs. The sector’s mixed performance underscores a bifurcation between companies with immediate contract pipelines and those reliant on longer-term capital allocation shifts. GE’s 36.3x P/E ratio, higher than Boeing’s 24.1x, amplifies its vulnerability to earnings revisions.

High-Leverage Contracts and Key Technical Levels
• 200-day MA: $252.89 (well below current price)
• RSI: 38.8 (oversold territory)
• Bollinger Bands: Lower bound at $282.47 (near current price)
• MACD: -3.35 (bearish divergence)

GE’s technicals suggest a critical juncture. The stock is testing its lower Bollinger Band at $282.47, with RSI in oversold territory, hinting at potential short-term rebounds. However, the bearish MACD and declining volume (2.03M shares) signal caution. For options, GE20251212C280 and GE20251212C285 stand out: the former offers 45.95% leverage with 27.79% implied volatility, while the latter provides 80.74% leverage and 26.93% IV. Both contracts have high gamma (0.033–0.035) and moderate delta (0.60–0.43), making them responsive to price swings. A 5% downside scenario (targeting $268.70) would yield a GE20251212C280 payoff of $11.30 per contract, while GE20251212C285 would see a $16.35 gain. These options balance volatility and liquidity, with turnover exceeding 9,000 shares. Aggressive bulls should consider GE20251212C280 into a bounce above $285, while bears may short GE20251212P265 if the $282.47 support breaks.

Backtest GE Aerospace Stock Performance
Below is an interactive event-study report that summarises how GE’s share price behaved after every intraday plunge of at least –3 % (low vs. open) since 2022.How to read the results quickly:• Sample size: 67 plunges.• Average close-to-close return after the event stays positive (≈ +0.4 % on day 1, +4.6 % by day 25), but none of the daily excess returns reach statistical significance, implying only a marginal edge.• Win-rate drifts from ~54 % on day 1 to ~72 % around day 10, then stabilises near 66 %–70 %.• Benchmark (buy-and-hold) outperformed the event strategy beyond day 12, so the plunge itself did not yield material alpha.Feel free to explore the interactive table/graph above or let me know if you’d like deeper cuts—for example:• different plunge thresholds (-2 %, -5 %);• risk-adjusted performance (Sharpe, drawdown);• applying position sizing or stop-loss rules;• comparing to other tickers or sector peers.

Act Now: GE Aerospace at Pivotal Technical Level—Bullish or Bearish?
GE’s 3.16% drop has created a high-stakes inflection point. With RSI in oversold territory and the stock hovering near its lower Bollinger Band, a rebound above $285 could reignite momentum. However, a breakdown below $282.47 would validate bearish technical signals. Sector peers like Boeing (BA) offer contrasting narratives, with their 0.06% gains suggesting defense budgets remain resilient. Investors should monitor the 200-day MA at $252.89 as a critical long-term floor. For immediate action, GE20251212C280 and GE20251212C285 provide high-leverage exposure to potential rebounds, while short-side opportunities emerge if the $282.47 level fails. Watch for $285 retests and sector-wide contract announcements to dictate next steps.