* UPDATE: GS - Closing the Weekly Trade

[livevol_ophir]

* UPDATE

This is a closing trade from the blog yesterday: <b><a href="http://livevol.blogspot.com/2010/08/gs.html">Goldman Sachs (GS) - Weekly Trade; Selling Vol Expansion</a></b>

GS is trading $151.33, down 1.7% with IV30&#8482 up 5.5%.
<img src="http://2.bp.blogspot.com/_hMry1m7UF10/TGKpJEWdbhI/AAAAAAAAEBc/Jb3N9NbvGdw/s1600/gs_summary_8-11-2010.gif">

The Options Tab (updated) is included (<a href="http://livevol.blogspot.com/2010/08/gs_11.html">click to enlarge</a>):

Yesterday we analyzed:
Buy 1 GS Monthly 155 put for $3.30
Sell 2 GS Weekly 150 puts @ $0.49
Value = $2.32

Today we close:
Sell 1 GS Monthly 155 put @ $4.85
Buy 2 GS Weekly 150 puts for $0.96
Value = $2.93

Hypothetical return: $2.93 - $2.32 = $0.61 or 26%. I must admit, it turned out a bit lucky; the market tanking the next day.

This is trade analysis, not a recommendation.

Details, trades, prices, vols, charts, skews here:
http://livevol.blogspot.com/2010/08/gs_11.html

 

[rew]

Any time I can get 26% in a day I'm happy to take the profits and run. Of course I can't trade at anywhere near the size of the trades that get featured here. (I don't think livevol will ever have a post that begins "10 put spreads were sold on XOM today...".)

 

[livevol_ophir]

Quote from rew:

Any time I can get 26% in a day I'm happy to take the profits and run. Of course I can't trade at anywhere near the size of the trades that get featured here. (I don't think livevol will ever have a post that begins "10 put spreads were sold on XOM today...".)

Lol;