Income Calendar in GS

[Steven Place]

What. A. Move.

Goldman is up almost 10% over a 3 day period.

So it’s a combination of the yield curve steepening and some election voodoo.

Either way, I’m treating this as an earnings-like event, where the stock has seen a strong volatility move and is searching for new equillibrium levels.

So here’s the trade setup:

IWO Premium Order Ticket
Type	Asset	Duration	Strike	C/P
STO	GS	20 Jan 17	190	Put
BTO	GS	21 Apr 17	190	Put
Total DEBIT:			3.8

Now look, if this thing continues to get jammed, we will simply scale into the trade some more. So a move to 205 or a selloff to 180 will cause an add.

Goal is 20% return on risk. After the Fed rate hike, the Jan options will get smoked and we’ll be able to exit then.

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[Steven Place]

Adding to this trade:

IWO Premium Order Ticket
Type	Asset	Duration	Strike	C/P
STO	GS	20 Jan 17	205	Put
BTO	GS	21 Apr 17	205	Put
Total DEBIT:			4.45

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[Chris Beyer]

Thoughts on this trade lately?

[Author]

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