GE Put Option Play

GE has been in stage 3 since January, and as the market as a whole is set for a downturn, and as GE itself is due for a downturn, the timing here seems good considering GE just broke its resistance level.

Their most recent earnings release was January 20th where they beat earnings by $0.01 per share.  Their next earnings release will be on April 20th, so there should be no earnings surprises to give us trouble here.

I want something in the money that will also expire next month, so we'll be going with the April $19 Put options.  The current bid/ask spread is $0.90/$0.92 and my beginning position size is $1,000 or less.

I will buy 10 contracts for a total position size of $920.  My ideal profit is 35%.  The commissions to buy & sell 10 contracts will be $45.  My cost basis will be $965.  Divide $965 by the inverse of 0.35 which is 0.65, and my target position size is $1,484.62.  Therefore the bid price will have to reach $1.49 for me to hit this goal.

I will place a limit order to buy 10 contracts of the April $19 Put options, and then simultaneously place a GTC sell order to sell those at the bid price of $1.49 per share per contract.