Goldman Sachs (last: 111.40)

goldmans-option-numbersLet’s see if a Hidden Pivot resistance at 112.31 can tame this psycho-ward escapee. Despite the violent price action, our position is showing a $90 paper profit at the moment and that could increase to as much as $1900 if the stock is trading around 115 when the April calls expire.  We are short three of them, long two July 115 calls as well, and long two April 85-90 put spreads for 1.20 apiece.  I’ve included a snapshot of an option calculator that shows how I arrived at the $1900 figure.  It has the July 115 calls worth $1497 each on April 18 with GS trading around 115. If you do the math, you’ll be rewarded with an insight into how a calendar spread — slightly ratio’d in this case — works.