Folks, I am sitting on monster profits here on GS. On Feb 23, I suggested buying GS 155/160 ratio spread. Here is the trade: GS Ratio Spread. The trade was done for net debit of $1.00. The spread has now expanded to $1.55 debit. GS is the strongest of all banks trading up 3.6% and breaking through critical resistance at $162.
I don't believe this momentum is over and it can continue until the stock reaches pre-earnings level of $168. But I want to take caution before the job report tomorrow and I am closing the entire position for 55% profit. I will reevaluate after the job report and might get back in.
Love it!
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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