When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (GS) – BUY
Buy the Goldman Sachs (GS) May 2021 $310-$320 vertical bull call spread at $8.50 or best
Opening Trade
4-19-2021
expiration date: May 21, 2021
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If you can’t do options, buy the stock on the next big dip. I expect Goldman Sachs to make it to $400 this year.
I am making a fortune in the stock market.
You are making a fortune in the stock market.
Goldman Sachs is making a fortune in the stock market.
That makes me want to buy Goldman Sachs, which is profiting immensely off of the current bull market.
I am therefore buying the Goldman Sachs (GS) May $310-$320 vertical bull call spread at $8.50 or best.
Don’t pay more than $9.30 or you’ll be chasing.
The company just announced earnings and they couldn’t be more pristine.
Q1 net revenues came to an eye-popping $7.7 billion. Earnings per share amounted to $18.60, up an astonishing 500% from a year ago. Return on equity was 31%. It doesn’t get any better than that.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.
This is a bet that Goldman will not trade below $320 by the May 21 option expiration day in 19 trading days.
Here are the specific trades you need to execute this position:
Buy 12 May 21 (GS) $310 calls at………….………$34.60
Sell short 12 May 21 (GS) $320 calls at………....$26.10
Net Cost:………..…….…..........……..………….….....$8.50
Potential Profit: $10.00 - $8.50 = $1.50
(12 X 100 X $1.50) = $1,800 or % in 19 trading days.
If you are uncertain about how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
