Hamzei_Analytics · @HFT_StockOption
4th Apr 2013 from TwitLonger
April 4, 2013
Goldman Sachs (GS)
Bias: Bearish
Price Target $138
We are bearish on GS and want to sell a call vertical to take advantage of the potential move lower.
The reason we are using options so close to expiry is due to GS's upcoming quarterly EPS announcement. In addition ,we have decided to use a short call vertical versus a long put vertical. The risk to reward for both strategies is the same. However, by using a short call vertical, we will have a theta decay advantage.
SELL To OPEN 2 140 GS Apr-12 Calls trading at $4.40
BUY To OPEN 2 145 GS Apr-12 Calls trading at $1.40
GS is now trading at $143.30
This spread is now trading at $2.00
The Total Credit of this spread is $4.00
Day Order Only