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) November $330-$350 vertical bull call spread at $16.50 or best
Opening Trade
10-1-2021
expiration date: November 19, 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 $450 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.
With a rising interest rate trend now accelerating, broker stocks are entering an uptrend that could last for months, if not years.
The Volatility Index at $25.00 also gives us another “BUY” signal. My Mad Hedge Market Timing Index is at a rare 23.
I am therefore buying the Goldman Sachs (GS) November $330-$350 vertical bull call spread at $16.50 or best
Don’t pay more than $17.50 or you’ll be chasing. These strike prices have major support from the (GS) 200-day moving average at $346.15.
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 will not trade below $350 by the November 19 option expiration day in 35 trading days.
Here are the specific trades you need to execute this position:
Buy 6 November 2021 (GS) $330 calls at……….….………$55.00
Sell short 6 November 2021 (GS) $350 calls at………....$38.50
Net Cost:………..…….…..............……..………….……….......$16.50
Potential Profit: $20.00 - $16.50 = $3.50
(6 X 100 X $3.50) = $2,100 or 21.21% in 35 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.
