GS - Goldman Sachs - Page 8

I was looking at doing a trade on GS as well. I read an article in saturday's paper that stated GS made a ton more money betting on a subprime decline than they lost in other securities based on subprime.

Expectations are for a 1% growth rate(EPS based) with revenues rising 4% sequentially.

Leaves a lot of room for a possible upside but then again any gloomy forecast can drag the markets.

Morgan Stanley reports Wednesday before the bell and Bear Sterns on Thursday before the bell. Needless to say, its a financial packed week.

A full week of surprises.

On the straddle note. Many people are looking for IV to rise, hence making a straddle the best play. I wouldn't recommend setting straddles as IV is consumed by deltas decay already, instead setting a strangle can rail in a bigger gain. Why?. The strangle will offset the delta decay with gammas rise, hence the bigger gain. The key here is to play AM at least two to three months out. Anything less than that contain PEPC premiums. To inflated to really rail in a good profit,

what kinda profit u thinknig bigbull, nice new pic also

if i am buying calls and puts is that a strangle

Big bull if your not busy stop in chat i wouldnt mind talking about these straddles

On a well timed GS strangle we're talking about a 21% gain. Not fancy shamnzy but its a gain.

I will try to stop on the live chat room tomorrow early in the morning before the markets open.

What I am trying to get across here is that a strangle is better off than a straddle.
I'll try to explain in the live chat room tomorrow before the markets open, if your not able to be there I'll explain on Wednesday before the market opens. I have a busy week ahead.

A strangle is a great idea, but I don't know much about options so I have a question. Do you use this usually the day right before earnings where there may be a signficance different in price?

Also lets say a stock is trading at 50 and you buy a call thats two month away for $55 and a put 2 months away for $45. Most likely in those 2 months the stock will go somewhere above or below the put and call, so wouldnt you almost always win?

the price of the options are taken into account especially for the amount of time you are suggesting (2 months). For you to make significant money it would have to be much higher than 55 or much lower than 45 because of your two buys. Covering both bases will cost you.

any proof or link to this news??? Interested here the lower gs goes today the better imo. Better gains for tuesday if news is good.

Ok here is a possible trade for today

the gains are calculated on todays date.

Breakeven 205 on down and 209.50 up

so u should make money right away on upside.


buy 5 220 dec calls

buy 6 195 dec puts


34.20 net debit

cost 3,420

max loss on day is $42.61

I bought DEC 240 calls way to early and am willing to let it ride. Initial instinct make u think big bonuses, hedging mortgage portfolio= big money but with all this BEN STEIN and others bringing up ethical/moral dilema i wouldnt be suprised if earnings not as dressed up. In best case earnings are huge and GS states they did nothing wrong or nothing that wasnt stated in their clause/waiver's. IMO people just bitching bc GS actually used its brain. tomorrow will tell if thats equals huge gains or minimized potential losses. GLTA

Wait, what? People are actually mad that GS had the foresight to take advantage of a situation that was presented to them?

The main issue with GS is that they were shorting mortgages that they were underwriting and that presents an ethical issue

hmm, what to do what to do

Sit on Hands. If you're going to play it, use a spread and hedge yourself. Don't just choose one direction on this.

Also: http://www.businessweek.com/managing...mpaign_id=yhoo

"One fund manager not employed by Goldman told me that a Goldman representative informed him that they were seeing unexplained anomalies in their models more than two years ago and began to prepare for the consequences."

i still think this will mave hard 15 dollars up or down on the news

How reliable is the source?

DEC calls as withering away all their premium. Looking to get in while GS is getting hammered, gonna strangle this.

not really. They were totally separate departments, it wasn't collusion inside GS.