Bull Put Spreads in GS

[Steven Place]

GS is heading back to prior levels of support, which also coincide with a rising 50 day moving average and a 38.2% retracement of the most recent bounce.

Here’s the trade:

Sell to open GS Jan 180/175 put spreads at .88 HALF SIZE

Add to the trade at 1.50, with intent to close this half at .80

If we hit 180, we will ROLL the spreads down and out to February options

[Shelley Katz]

Steven Please state expiration dates

[Steven Place]

Adding second round:

Sell to open GS Jan 180/175 put spread at 1.50

Order to close that half at .80

[Steven Place]

Nice gap higher, current mid on the spread is .92 so I’m bidding .85 to close out the second round of the GS put spreads.

Update: 0.85 crossed, no ready to resell again at 1.75

[Steven Place]

Bidding to close the first round of spreads at .40, to be all out. Will look to resell the spreads at .80 if we get another dip again.

[Steven Place]

I’m pretty much going to call this new GS trade an extension of the same trade thesis I put out here. Trend’s still up, it’s a bit oversold, we’ve got good premium to sell:

Here’s the trade:

Sell to open GS Feb 175/170 bull put spread @0.80 (50% position size)

ADD to the trade at 1.50.

OUT of the trade at 0.30

I am OK with holding this through earnings.

[Steven Place]

Earnings are out, the stock didn’t collapse but it’s still having some downside momentum.

I”m considering this trade to be more in “damage control” mode, so instead of adding to the original trade, I will roll the spread down and add on some lower strikes.

Buy to close GS Feb 175/170 bull put spread @2.00

Sell to open full size Feb 165/160 bull put spread @.88

That gives us another 10 points of padding on the trade. Is it possible that GS sells off another 10 points? Sure, but it’s not probable.

[Author]

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