Reminder: Remember take profits in trades while markets remain uncertain. Holding onto a trade for that last 15 or 10 cents is usually a mistake in a market that could pullback before it moves higher. Seasonality is on the side of the bulls, but Decembers have been poor before with big drops the week ahead of Christmas and then a rally in the final week. Stay cautious and keep closing to lock in profits. If nervous, then after closing a trade, keep capital out of further trades until there are signs of a definite rally higher.
Goldman Sachs Stock (GS)
The stock is moving higher and remains undervalued based on their PE of 6.5 and earnings both over the past two years and 2022 outlook.
Trade 1: Dec 31 Expiry
Sold 10 put contracts for Dec 31 expiry at the $350 put strike for $1.35 – $350 is strong support for the stock. The stock was at $350 June 18.
I have offers in to buy 10 put contracts of the $310 put strike for 20 cents
Once the long puts are filled this forms a $40 credit put spread returning 2.8%.
I have offers in to buy to close early starting at 50 cents and I will reduce that amount, as the trade moves toward expiry Dec 31..
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.