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Today, we’re opening a new bearish trade on General Electric (NYSE:GE). The market tumbled into the close on Wednesday, and while we don’t think the S&P 500 is past the point of no return, GE isn’t in nearly as stable of a position. The company was already struggling before the market got spooked this month, and we expect traders on Wall Street to continue punishing those stocks — like GE — that are fundamentally the weakest.

Based on the $2-$3 incremental drops the stock has been experiencing during the past few months, we are looking for GE, after having broken through support at $16, to drop down below $14 or $13 before it finds its next level of short-term support.

‘Buy to open’ the GE March 14 Put (GE180316P00014000) for a maximum price of $0.40.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.