Goldman, along with the other big banks, have started to establish some pretty decent sized downtrends. The stock is hanging right around 140, and if it loses that level, it will be a quick trip down to 130-128.
That level coincides with the big breakout from 2011-2012.
The stock isn’t a long here, but if it slams into that 130 level then we’ll look at some bull put spreads.
We also need to see energy taken out of the trade. That means if the stock slowly drifts lower into 130, then it’s not a good long. But if we see some decent vol and it hits it quickly, then it’s going to be a better setup.
Option Spread Choice:
Aug 115/110 bull put spread @0.65
If the stock bounces and it takes a while to breakdown, then we’ll look to September options.