Monday, June 16, 2008

Financial Fallout

Today the Psychology of the Call team purchased July $160 puts on Goldman Sachs (GS). We did so because of the threat of regulations on financials, our anticipation of GS reporting their worst quarter in a long time, and the continued crushing influence of crude oil prices on the market in general. We bought small lots at various times throughout the day and the average price paid per contract was approximately $3.05 - $3.10. Goldman reports Tuesday morning before the market opens. We'll update the trade at that time.

4 comments:

Anonymous said...

Good luck with the GS puts POTC.

I didn't have the guts to GS and took a short position in BBY instead. Is there a reason u didn't buy closer to the money puts like the 175's or 170's?

I'm in BBY SI BBY July $45 puts at an average of $1.75.

Consumers cannot afford the unnecessary with such high food and gas prices. With record high oil everybody should be guiding down on their forecasts.

Here's hoping tommorrow is a good day for all the shorts,

LQ

The Call Team said...

When you buy puts, and the trade works out, the 'snow ball' effect of selling is often shocking to most, therefore we bought the $160 puts. POTC sees GS below $160 with all of the other head winds to come: multiple IB reports, multiple banking reports, and the chatter of regulations on the horizon convinced us GS will fall harder than the average analyst on the street.

StockWatcher said...

Those July 160 puts arent looking too good at the moment. Early days yet, though.
Good luck!

Anonymous said...

Just wanted to let every one know, I exited all my BBY SI BBY July $45 puts bought yesterday at $1.75, this morning between 2.00 and 2.35.

bid 2.30 to 2.40 ask at 11:38 EST
last trade 68 contracts at $2.37

BBY profits were down year over year but the company release is misleading because of the share count reduction.

Looks like the big boys are killing all the call & put buyers at the moment on GS options.

Good thing u bought the July contracts to give your plan more time to play out.

LQ