Is Goldman Sachs (GS) ready?

GS is looking bearish. Key support area seems $225 followed by $220. If those two are taken out, $210 will another area to watch out. I am tempted to get in below $225 as the volume today is high and there are few more hours to go. It may be pinned around 220 tomorrow so interesting stuff will happen from Monday. In any case, an opportunity worth looking at.

gs-chart-june-14-2007.pngNeedless to say, no naked. This is a directional speculative trade, and I always prefer hedged and hence even if I open a bearish spread, that’s going to be via spread.

Discuss it here at the forum.

Profitable trading, OptionPundit


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3 responses to “Is Goldman Sachs (GS) ready?”

  1. 95omega Avatar
    95omega

    I’m bullish on GS. Only way to trade this stock is to go long and buy the dip. Stock trades at a 9 multiple. Is very cheap! Watch out for earnings as well…

    95omega

  2. dan Avatar
    dan

    GS went up 5 points before earnings,I have a put spread 210/200 so profit taking is taking place today. This is not a bearish stock by any means. Those tight fisted bankers with marble floors will not let their wealth sink like any other wallstreet fortune. They will make sure it doubles up, this the game they play.

  3. OptionPundit Avatar

    Dan, 95omega, thanks for sharing your point of view…in any case it didn’t drop below 225 yesterday and it was for a very short term, intraday trading opportunity only, not for long term.

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