As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert - (GS) ? Expiration
EXPIRATION of the Goldman Sachs (GS) May, 2015 $185-$190 deep in-the-money vertical call spread at $5.00
Closing Trade: NOT FOR NEW SUBSCRIBERS
5-18-2014
expiration date: May 15, 2015
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Goldman Sachs (GS) certainly read my script on this one. The firm more than over delivered the blockbuster earnings I expected for Q1, thanks to the strength of their European bond trading operation (Go Euro QE!).
Then the shares got a shot of adrenaline with the sudden rise in interest rates, which is hugely positive for the entire financial sector, as it increases their profit margins.
We also moved back into a ?RISK ON? environment, as I expected for the second half of April, with bonds selling off and interest rates rising. Higher interest rates are hugely positive for financial stocks, like Goldman Sachs.
These developments all allowed readers to capture a $10 rise in the stock price.
As a result, we have earned the maximum possible profit in the Goldman Sachs (GS) May, 2015 $185-$190 deep in-the-money vertical call spread.
You total return on this investment has been 13.3% on only 22 trading days. This has also been the second consecutive profitable Trade Alert for Goldman Sachs in a month.
If you bought the shares and are a medium term investor, hold on. I think the financial sector is going to lead for the rest of 2015, subject to the normal corrections.
The same is true for the Financial Select Sector SPDR (XLF). The three largest holdings of this fund are Berkshire Hathaway (BRK/B), Wells Fargo (WFC), and JP Morgan (JPM). Goldman Sacks (GS) is its 5th largest position, accounting for 2.64% of the total assets.
To learn more about the (XLF), please click here at https://www.spdrs.com/product/fund.seam?ticker=xlf .
This brings our year to day gain for the Trade Alert Service for 2015 to an outrageous 23%. Make hay while the sun shines!
Here are the specific prices for the expiration of this position:
long 23 May, 2015 (GS) $185 calls at?????$17.97
short 23 May, 2015 (GS) $190 calls at..................$12.95
Net expiration value:??????????...$5.00
Profit: $5.00 - $4.40 = $0.60
(23 X 100 X $0.60) = $1,380 or 1.38% profit for the notional $100,000 portfolio.
