GS

Discussion in 'Options' started by oldnemesis, Apr 13, 2016.

  1. $5 billion is a great deal for Goldman, I would even say amazing deal, as always Wall Street leaves by its rules.
     
  2. Well the market agrees with you:

    http://stockcharts.com/h-sc/ui?s=gs

    http://finance.yahoo.com/echarts?s=GS+Interactive#{"range":"5d","allowChartStacking":true}

    And so does Bernie Sanders:

    http://fortune.com/2016/04/13/bernie-sanders-goldman-ad/?xid=yahoo_fortune

    Well... no offense... but it matters not a whit what Sanders likes or dislikes.

    I'm sure GS already has the money in their piggy bank.

    :)

    The remaining issue will be Q1 earnings which are coming up.

    http://www.nasdaq.com/earnings/report/gs

    http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.GS.NYS

    JPM reported today:

    http://www.investors.com/news/jpmor...-top-views/?ven=YahooCP&src=AURLLED&ven=yahoo

    Which the market took as positive:

    http://stockcharts.com/h-sc/ui?s=JPM

    So what's the trade on GS??
    with GS at 159.85
    Jan '17 125/120 bull put spread for a net credit of $50
    Yield = 50/450 = 11.1% in 282 days or 14.4% annualized
    Prob = 82%
    (With so much convolution I won't bother to produce an expectation)

    Price...... Profit / Loss...... ROM %
    90.00......... (450.00)......... -88.90%
    110.00....... (450.00)......... -88.90%
    120.00....... (450.00)......... -88.90%
    124.50............ 0.00............. 0.00%
    125.00.......... 50.00........... 11.10%
    130.00.......... 50.00........... 11.10%
    160.00.......... 50.00........... 11.10%
    180.00.......... 50.00........... 11.10%
    200.00.......... 50.00........... 11.10%
     
    Last edited: Apr 13, 2016
    felixbocharov likes this.
  3. As far as I know GS bet that the oil prices will be lower than $20 this year. Might be a problem for them
     
  4. it can be true, because according article that i read here
    Oil growth its depend on result of oil producer meeting next sunday
     
  5. Seems like they will reach a deal. I'm not sure what kind of the deal, most probably they'll just agree froze the production, but who knows - maybe they'll even agree to cut.