AP Images / Richard Drew General Electric is paying the price for a poor earnings season, which saw it cut forward guidance. Options traders were woefully unhedged for the drop, while short sellers weren't effectively positioned to profit from the decline. General Electric's stock is getting whacked after the company fell short of analyst estimates and slashed its forecast. And to make matters worse, traders weren't braced for a drop that stretched as deep as 6.3% in the company's shares on Friday, a loss that has the stock at its lowest level in more than four years. They were paying the lowest premium in eight years to protect against a decline in GE's stock, relative to bets on an increase, according to data compiled by Bloomberg.