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Summary
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General Electric's aerospace division is surging on renewed optimism surrounding a tentative labor agreement with the UAW. With the stock trading near its 52-week high of $294.74, investors are pricing in reduced operational uncertainty after months of strike-related volatility. The $3,500 health care cash payment and workforce guarantees in the proposed pact have shifted sentiment from bearish to cautiously bullish.
UAW Strike Resolution Fuels GE Aerospace Rally
The 2.23% intraday gain stems directly from the announced tentative agreement between GE and UAW Local 647. After a 640-employee strike that began August 27, the union authorized a contract extension on September 12 that includes $3,500 cash payments to offset health care costs, additional paid time off, and workforce stability guarantees. This resolution eliminates the risk of prolonged production halts at key Ohio and Kentucky facilities, which had previously pressured shares. The market is now pricing in restored operational continuity, with the 52-week high of $294.74 within striking distance as the UAW prepares its ratification vote.
Options Playbook: Leverage Bullish Momentum with Gamma-Driven Calls
• 200-day average: $219.67 (well below current price)
• RSI: 75.8 (overbought territory)
• MACD: 4.18 (bullish divergence from 3.49 signal line)
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Technical indicators suggest a continuation of the bullish momentum, with the RSI in overbought territory and MACD showing positive divergence. Key levels to watch include the 52-week high at $294.74 and the 30D support/resistance range of $275.94-$276.36. While the overbought RSI warns of potential near-term consolidation, the MACD's upward trajectory and high gamma options suggest the rally could extend.
Top Option 1: GE20250926C295
• Call option, strike $295, expires 2025-09-26
• IV: 28.01% (moderate)
• LVR: 61.12% (high leverage)
• Delta: 0.456 (moderate sensitivity)
• Theta: -0.6758 (high time decay)
• Gamma: 0.02785 (strong price sensitivity)
• Turnover: $94,130 (liquid)
This contract offers optimal leverage with a 61% price amplification effect. The moderate
Top Option 2: GE20250926C297.5
• Call option, strike $297.5, expires 2025-09-26
• IV: 30.14% (moderate)
• LVR: 69.71% (high leverage)
• Delta: 0.397 (moderate sensitivity)
• Theta: -0.6337 (high time decay)
• Gamma: 0.02517 (strong price sensitivity)
• Turnover: $86,398 (liquid)
This contract provides even higher leverage at 69.71% with a slightly lower delta. The $297.5 strike is just below current price, making it ideal for a breakout play. A 5% upside would generate a $10.34 payoff (max(0, 307.84-297.5)).
Aggressive bulls should consider a diagonal spread using these contracts to capture both directional and volatility gains. The high gamma and moderate delta profile makes these options ideal for a continuation of the current bullish trend.
Backtest GE Aerospace Stock Performance
Below is an interactive back-test dashboard that summarises how GE (GE.N) performed each time its daily close jumped ≥ 2 % from the previous close between 1 Jan 2022 and 16 Sep 2025.Key metrics (full detail in the dashboard):• Total return over the test set ≈ 550.9 % • Annualised return ≈ 54.9 % • Maximum draw-down ≈ 23.6 % • Sharpe ratio ≈ 2.03 Assumptions & notes:1. “Intraday surge” was approximated with the daily close-to-close change because intraday tick data were not available. 2. Positions are opened at the surge-day close and closed at the next trading-day close (no leverage, commissions ignored). 3. No additional risk controls (stop-loss, take-profit,
Bullish Momentum Intact—Position for Next Leg Higher
The UAW ratification vote this week will be the key catalyst for GE's next move, but the current technical setup favors a continuation of the rally. With the 52-week high at $294.74 in sight and options showing strong gamma characteristics, position sizing should reflect the elevated volatility. Investors should monitor the 294.74 level as a critical breakout point—failure to hold here could trigger profit-taking. Meanwhile,

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