Thursday, February 2nd, 2017

GS Earnings Trade

GS stock has been on tear  going up  50% in last few weeks. Going from 73 on March 9, 2009  to 119 in on April 6, 2009 ! That’s a more than two standard deviation move. Something quite unusual that we donot see quite often. We had been constantly trading GS in our members area and making money. Its one our favorite stock in this market rally.

Here is Dan Sheridan of CBOE with his earnings forecast and a free trade. Its called out of the money put butterfly and its purely an speculative income strategy. Goldman Sachs has earnings due on April 14, 2009. Dan Sheridan outlines how GS has behaved in the past 4 earnings and what to expect. Its about an average of 2.71% move in the past.  I loved this strategy so much, and being indebted to this master trader and educator, I wanted you to look at this trade, and share it with you. Its a free trade and the video is quite good .

The strategy involves capturing premiums with very small investment or maximum loss. For example Dan Sheridan outlines 2 strikes in the video 100 and 105. For example

BUY APRIL 110 PUTS + 3
SELL APRIL 105 PUTS – 6
BUY APRIL 100 PUTS + 3 Net debit= 180

NOTE : Members area will have its own GS earnings strategy posted if GS is still viable.

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Comments

One Response to “GS Earnings Trade”
  1. I am looking for information about strategies that the home trader can use. Your site will help extend my knowledge of the subject. Is it realistic for the home trader to engage in selling options, or should he stick to buying only? Is it even viable to attempt multi-part trades consisting purely of bought options?

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