I am a day late to the shortfest. Was thinking 250 maybe the top on GS. But it looks like the festivities have begun without me. As I have mentioned before, I think a LT target for GS is 119. Because of this conviction, I bought deep OTM puts that cost me almost nothing but will pay off big if I'm even close to being right.
Long GS puts
Started by
kaiser soze
, Nov 02 2007 11:01 AM
4 replies to this topic
#2
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lasergirl
Posted 02 November 2007 - 12:20 PM
GS will print 250+ again. I would wait on those puts (JMHO).
"Daytrading -- An Extreme Sport !"
#3
kaiser soze
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Posted 02 November 2007 - 12:33 PM
My reasoning goes something like this : To resuscitate the financials shorts have to cover or fresh buying has to come in. Its a little early for fresh buying when the news flow is bad and stocks such as GS are still close to their 52 wk highs. As for shorts covering, because of the very rapid drop in the financials, strong shorts are sitting on 7-10% gains (non-leveraged) already - which form a formidable beach-head. The one silver bullet to shake them (rate cuts) has already been exhausted (more or less). So this drop is likely to be FOR REAL.
#4
eminimee
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I don't care who's fur is flying...
#5
kaiser soze
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Posted 08 November 2007 - 01:34 PM
My deep OTM puts became ATM. I just sold all GS puts for a satisfying profit.
I still stand by my long term target of 119. But right now, the sell-off maybe overdone and I will reload later as necessary.
Remember when we are trading against the boyz, our tactics need to be that of an insurgent.
