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) October $320-$330 vertical bull call spread at $8.50 or best
Opening Trade
9-20-2021
expiration date: October 15, 2021
Portfolio weighting: 10%
Number of Contracts = 11 contracts
If you can’t do options buy the stock on the next big dip. I expected 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.
And China’s Largest Real Estate Developer Goes Bust, the China Evergrande Group, with $300 billion in debt just gave us a great entry point. The move smashed risk markets globally, opening the Dow Average down 850. Bitcoin plunged 10%.
Is this China’s Lehman moment, or just another day at the office? It does take them another step back towards real communism.
The Volatility Index at $28.00 also gives us another “BUY” signal. My Mad Hedge Market Timing Index is at a rare 19.
I am therefore buying the Goldman Sachs (GS) October $320-$330 vertical bull call spread at $8.50 or best.
Don’t pay more than $9.00 or you’ll be chasing. These strike prices have major support from the (GS) 200-day moving average at 339.43.
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 $330 by the October 15 option expiration day in 19 trading days.
Here are the specific trades you need to execute this position:
Buy 11 October 2021 (GS) $320 calls at…………....………$58.00
Sell short 11 October 2021 (GS) $330 calls at……...…....$49.50
Net Cost:………..…….………..….............……….………….......$8.50
Potential Profit: $10.00 - $8.50 = $1.50
(11 X 100 X $1.50) = $1,650 or 17.64% 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.
