* UPDATE: GS - Closing the Weekly Trade

Discussion in 'Options' started by livevol_ophir, Aug 11, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    * UPDATE

    This is a closing trade from the blog yesterday: <b><a href="http://livevol.blogspot.com/2010/08/gs.html">Goldman Sachs (GS) - Weekly Trade; Selling Vol Expansion</a></b>

    GS is trading $151.33, down 1.7% with IV30&#8482 up 5.5%.
    <img src="http://2.bp.blogspot.com/_hMry1m7UF10/TGKpJEWdbhI/AAAAAAAAEBc/Jb3N9NbvGdw/s1600/gs_summary_8-11-2010.gif">

    The Options Tab (updated) is included (<a href="http://livevol.blogspot.com/2010/08/gs_11.html">click to enlarge</a>):

    Yesterday we analyzed:
    Buy 1 GS Monthly 155 put for $3.30
    Sell 2 GS Weekly 150 puts @ $0.49
    Value = $2.32

    Today we close:
    Sell 1 GS Monthly 155 put @ $4.85
    Buy 2 GS Weekly 150 puts for $0.96
    Value = $2.93

    Hypothetical return: $2.93 - $2.32 = $0.61 or 26%. I must admit, it turned out a bit lucky; the market tanking the next day.

    This is trade analysis, not a recommendation.

    Details, trades, prices, vols, charts, skews here:
  2. rew


    Any time I can get 26% in a day I'm happy to take the profits and run. Of course I can't trade at anywhere near the size of the trades that get featured here. (I don't think livevol will ever have a post that begins "10 put spreads were sold on XOM today...".)
  3. livevol_ophir

    livevol_ophir ET Sponsor

    Lol; :D