This best of the breed bank is finally breaking out above $180 which has been the resistance since mid-Nov 2009. I think this new leg up from here could easily take the stock to retest previous 52-week high of $193. Despite recent quick run from $170 to $180 in a matter of just few days, GS has underperformed the rest of components in XLF. I think thats about to change.
- Buy to open July $190 call
- Sell to open May $190 call
I just filled the order for $2.75. I tried for the mark at $2.70, but couldn't get through. Notice that earlier I did MEE calendar with short April options and here I am doing GS calendar with short May options. The reason is MEE is nearing rising support line, so I see limited downside risk and thus not so concerned about Gamma. But GS has been rising here and is well above $168 support. Here I am more concerned about Gamma risk so I want to go straight to May short calls to protect myself if there is a pull back.
Good luck!
