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) December 2021 $340-$360 vertical bull call spread at $16.00 or best
Opening Trade
11-30-2021
expiration date: December 17, 2021
Portfolio weighting: 10%
Number of Contracts = 6 contracts
If you can’t do options, buy the stock on the next big dip. I expect Goldman Sachs to make it to $500 next year.
Fed governor Jay Powell said in testimony in front of the Senate Banking Committee today that inflation is no longer “transitory”, implying that hotter inflation numbers are to come. Finally, a nod to reality!
Stocks tanked 600 points on the comment. Bonds should crash but strangely are holding up. Watch this space. The news could give us a tradable bottom for all asset classes, especially with the Volatility Index (VIX) back up to $29.
I am therefore buying the Goldman Sachs (GS) December $340-$360 vertical bull call spread at $16.00 or best
Don’t pay more than $18.00 or you’ll be chasing.
The company just announced earnings and they couldn’t be more pristine.
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 Sachs will not trade below $360 by the December 17 option expiration day in 13 trading days.
Here are the specific trades you need to execute this position:
Buy 6 December 2021 (GS) $340 calls at………….………$40.00
Sell short 6 December 2021 (GS) $360 calls at………....$24.00
Net Cost:………..…….………..............…………………….......$16.00
Potential Profit: $20.00 - $16.00 = $4.00
(6 X 100 X $4.00) = $2,400 or 25.00% in 13 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.
