It is now clear, that General Electric has been cooking it's books for years now!
Says Harry Markopolos, a legendary whislteblower, who runs a finical fraud detection company, famous with him exposing Bernie Madoff and his Wall Street firm Bernard L. Madoff Investment Securities LLC, a hedge fund that turned out to be a giant Ponzi Scheme!
The company is allegedly lacking 39 billion in cash, that being a conservative estimation, covering up it's losses with sophisticated accounting and it's organizational structure!
I am long PUT options on the 2.00-1.5 level with 4-6 moths expiration, and will be adding to the portfolio each month!
When the company announces it's bankruptcy the stock price will go below the mentioned levels, ideally to a couple of cents per share!
A MASSIVE opportunity with 1:100/ 1:300 returns, as the put options on these levels are currently worth almost nothing!
even if the odds of it going bankrupt is 1:2, the risk return ratio is just mind blowing!
It is important to note, that I am taking 4-6 months as an average for the previous cases of such fraud detection, like Enron and WorldCom, which both went bankrupt within 4 moths after the exposure!
SGEo I am just being on the safe side here, being up put options with further expiration each month!
It does not matter how the stock's price behaves during these 4 months.If it goes up, take it as the opportunity to double down on your PUTS position.