There are currently no good reasons to own General Electric Company (NYSE:GE) stock. Just ask Warren Buffett. The “Oracle of Omaha” this week ditched his $315 million position in GE stock, sending a ripple of bearish sentiment throughout the market.

Honestly, like many GE bulls, Buffett may have waited a bit too long to bail on the ailing blue-chip conglomerate. General Electric has truly become the dog of the Dow. Down more than 20% this year, GE stock is the worst-performing member of the Dow Jones Industrial Average. By comparison, the Dow itself is up more than 10% so far in 2017.

Click to Enlarge  General Electric has additional concerns that could see the shares sink even lower before they eventually hit bottom. Not only is GE stock trading at fresh 52-week lows, but the shares continue to test key technical support levels … and fail.

Most recently, it entered what appeared to be a basing pattern along support at $26.50. This support level gave way last week, and GE is now headed toward a confrontation with $25, with another potential failure of support just over the horizon.

Driving those lower lows is a slowly evaporating sentiment backdrop. Currently, Thomson/First Call reports that only eight of the 16 analysts following GE stock rate the shares a buy or better, down from readings taken in May showing 10 buy ratings.

The 12-month price target has eroded as well, falling to $29.31 from a reading of $32.29 back in May.

Even short sellers are beginning to take notice of GE. While short interest accounts for a measly 1.25% of GE’s total float, the number of GE shares sold short jumped by 14% during the most recent reporting period. Should this trend gain momentum, it could mean considerably increased selling pressure for GE stock.

Turning to GE’s options backdrop, we find another sign of lingering optimism. Currently, the September put/call open interest ratio rests at 0.76, with calls still holding their ground against puts among back-month options. As GE’s decline worsens, I would expect this ratio to move closer to 1.0, and sentiment to shift fully bearish before GE stock hits bottom.

Overall, September implieds are pricing in a potential move of about 3.8% for GE stock ahead of expiration. This places the upper bound at $26, with the lower bound coming in near $24. Once again, volatility is well above historicals for GE, boosting options prices.

2 Trades for GE Stock

Put Spread: With bearish sentiment on the rise, and selling pressure increasing, the path of least resistance for GE stock lies to the downside. Traders looking to take advantage of GE’s continued decay might want to consider a Sep $24/$25 bear put spread.

At last check, this spread was offered at 24 cents, or $24 per pair of contracts. Breakeven lies at $24.76, while a maximum profit of 76 cents, or $76 per pair of contracts — a 216% potential return — is possible if GE stock closes at or below $24.50 when September options expire.

Put Sell: If an outright bearish play makes you nervous, then an out-of-the-money put sell may be more to your risk level. Along those lines, a Sep $23 put sell might be a way to capitalize on the slow rate of descent in GE stock.

At last check, this put was bid at 7 cents, or $7 per contract. The upside to this put sell strategy is that you keep the premium as long as GE stock closes above $23 when September options expire. The downside is that should GE trade below $23 ahead of expiration, you could be assigned 100 shares for each sold put at a cost of $23 per share.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.