GS

Goldman Sachs (GS)- A Potentially Profitable Opportunity

By | Backspread, Option Trading, Trade Ideas | No Comments

Goldman Sachs (GS) is down $40 since April 16th; How much more it has to lose? Anybody’s guess is probably better than mine. Regardless of whatever I think, I guess they are too big, powerful and connected to go under. With that bullish bias, here is a trade idea that potentially can deliver excellent results on upside. But wait a min, what if I am wrong? It can still make some gains on downside as…

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What Exactly is Option Trading?

By | Butterfly spread, Earnings, Investment Strategy, Option Expiration, Option Trading, Option Trading Strategy, Past Performance, US Market | No Comments

A Fascinating Friday ! That’s how I can think about Market’s action on Friday. Option trading is not only about attending a seminar, do some paper trades, get some winning trades and the stage is set. It is also about constantly evolving your own trading style and continue to sharpen your saw. With this post I hope you pick up one or two important nuggets that might add value to your trading style, so pls…

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The Geithner Put – The Public Private Investors Partnership Fund

By | Market Psychology | 2 Comments

The Geithner Put – PPIP Plan I have been thinking about this for a while on how best to simplify and John Hussman did an excellent write-up to explain his thoughts, similar to mine, about this whole PPIF program. So without any modifications, let me share what what he thinks- Last week saw a continuation of the impenetrably misguided policy response to this financial crisis, which seeks to address the downturn by encouraging more of…

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Thrilling Expiration Friday

By | Daily Report, Option Expiration | One Comment

Too much to handle for the week which slowed down the postings this week. What a “Rambo Fed” action that was (I was looking for a picture replacing Bernanke with Stallone but gave up after a few searches). But guess what, was this really surprising, I don’t think so. Uncle Ben has already made this clear long time back.To find out what other tools Uncle still has in his magic box, you may want to…

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Berkshire Hathaway’s worst year, Buffet Speaks, Likes Long Term

By | Investment Strategy, US Market | No Comments

Berkshire Hathaway (BRK.A) had its worst year on record, Chairman Warren Buffet told shareholders Saturday that the economy would remain in “shambles” during 2009 and beyond. His 22 page annual letter is full of wisdom nuggets. Also you may wanna read the annual report. Though I am capturing key points per my understanding, I shall encourage my readers to read the full letter as it offers valuable insights. Berkshire Hathaway profits dropped 96%. The per-share…

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Johnson Controls (JCI) and Goldman Sachs (GS)

By | General, US Market | No Comments

Johnson Controls (JCI) said it is withdrawing its 2009 financial guidance due to “the rapid decline in global automotive production and uncertain industry conditions.” It paints pretty bad picture for the automotive industry for both US and Europe.  Johnson Controls issued financial guidance on Oct. 14 that was based on 2009 assumptions of 12.3 million vehicles in North America and 21.2 million in Europe. The company’s latest production estimates for 2009 are 9.3 million units…

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