Goldman Says Buy Puts Because U.S. Stocks May Resume Retreat

A

ASusilovic

Investors should buy put options on the Standard & Poor’s 500 Index because the benchmark for U.S. stocks may fall back to the 11-year low it reached in November, Goldman Sachs Group Inc. said.

“Dismal” fourth-quarter profits and forecasts from companies as well as waning investor confidence in President Barack Obama’s economic stimulus plan may drive the S&P 500 toward 752.44 in the next month, Goldman strategists said.

For investors using a “put spread” strategy, the highest payoff would be generated through buying March 825 puts and selling March 745 puts, Krag “Buzz” Gregory and John Marshall wrote in a report distributed to clients today. That trade would produce $1.85 in profit for every $1 invested should the S&P 500 drop to its November low, they said. The index declined 0.1 percent to 824.94 at 1:14 p.m. in New York today.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aotLF3OO7sDQ&refer=home

And sell Goldman puts strike 100. A lot of premium to earn !
 
Quote from JamesVU2000:

These fucking assholes should be out of business. Why the hell are we proping up these clowns?
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Their job is to recommend to their clients HOW to make money not be politically correct.
 
You mean Abby Joseph Cohen does NOT 'see a lot of value out there?'

http://www.itulip.com/awards.htm

abby.gif



Thanks, Abby!
Clown-01.gif
 
Quote from Vespasian:

Their job is to recommend to their clients HOW to make money not be politically correct.
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No, their JOB is to make Goldman more money. They're probably selling put premiums right now. I don't trust anything they say. There's an agenda behind all of their press releases.
 
Quote from ASusilovic:

Investors should buy put options on the Standard & Poor’s 500 Index because the benchmark for U.S. stocks may fall back to the 11-year low it reached in November, Goldman Sachs Group Inc. said.

“Dismal” fourth-quarter profits and forecasts from companies as well as waning investor confidence in President Barack Obama’s economic stimulus plan may drive the S&P 500 toward 752.44 in the next month, Goldman strategists said.

For investors using a “put spread” strategy, the highest payoff would be generated through buying March 825 puts and selling March 745 puts, Krag “Buzz” Gregory and John Marshall wrote in a report distributed to clients today. That trade would produce $1.85 in profit for every $1 invested should the S&P 500 drop to its November low, they said. The index declined 0.1 percent to 824.94 at 1:14 p.m. in New York today.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aotLF3OO7sDQ&refer=home

And sell Goldman puts strike 100. A lot of premium to earn !
More...
Warren Buffett has been selling puts since late 2008.
Now GS wants to collect some premium.

At least this says the pros don't expect the market to go down big, maybe it will remain rangebound, not up.
 
Quote from ASusilovic:

Investors should buy put options on the Standard & Poor’s 500 Index because the benchmark for U.S. stocks may fall back to the 11-year low it reached in November, Goldman Sachs Group Inc. said.

“Dismal” fourth-quarter profits and forecasts from companies as well as waning investor confidence in President Barack Obama’s economic stimulus plan may drive the S&P 500 toward 752.44 in the next month, Goldman strategists said.

For investors using a “put spread” strategy, the highest payoff would be generated through buying March 825 puts and selling March 745 puts, Krag “Buzz” Gregory and John Marshall wrote in a report distributed to clients today. That trade would produce $1.85 in profit for every $1 invested should the S&P 500 drop to its November low, they said. The index declined 0.1 percent to 824.94 at 1:14 p.m. in New York today.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aotLF3OO7sDQ&refer=home

And sell Goldman puts strike 100. A lot of premium to earn !
More...

lol and what about 200 0r $30 oil?
 
Quote from Daal:

They seem to be half right. selling those puts is suicide
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Yeah, selling puts in the face of rising volatility and a declining market is the absolute worst thing a trader could do here. It's the polar opposite of what one should do. I think the author of this thread must have gotten a little mixed up....or at least I'd like to think so.
 
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