GS – Goldman Sachs (Last:153.24)


The vertical bull spreads that subscribers hold in this stock are virtually riskless, since they were legged on for a net CREDIT of 0.01.  This means that if Goldman shares were to fall to zero we would have no loss, even after commissions.  Specifically, we hold the July 195-200 call spread 32 times — a position that could produce a gain for us of $16,000 if Goldman is trading above $200 when the options expire on July 19.

What are the chances that this gambit will pay off at maximum odds? The chart shows that Goldman would need to put on a powerful burst of speed to deliver on its potential.  A move to at least 180.67 looks like an odds-on bet a this point, and if the stock were to get there before July we’d be tempted to tell you to cash out of the position for a profit of perhaps $3000-$4000. That’s because GS would probably have to noodle around for a week or two to develop enough thrust for the additional $20 run-up it would take to push our spread in-the-money.  For now, let’s cross our fingers and hope that we are challenged with such a decision.  Think you can’t do this stuff?  Click here and let us show you how. ______ UPDATE (July 8):  The stock is trading about where it was two months ago, making the chance of a payoff extremely remote. However, since our spread was legged on for a small credit, we’ll come away with no loss even after taking commissions into account.

Comments on this entry are closed.

Hidden Pivot Graduate
Help Page

Click here
for a help page needed as a Hidden Pivot Graduate.

Keep Your
Skills Current

Click here
for a special deal for graduates of the Hidden Pivot Course who want to stay on the cutting edge


Start a Subscription
Lost my password

Seminar Information page.

Tuesday, April 17, 2018

The consistent accuracy of Rick Ackerman’s forecasts is well known in the trading world, where his Hidden Pivot Method has achieved cult status. Rick’s proprietary trading/forecasting system is easy to learn, probably because he majored in English, not rocket science. Just one simple but powerful trick -- managing the risk of an ongoing trade with stop-losses based on ‘impulse legs’ – can be grasped in three minutes and put to profitable use immediately. Quite a few of his students will tell you that using ‘impulsive stops’ has paid for the course many times over.

Another secret Rick will share with you, “camouflage trading,” takes more time to master, but once you get the hang of it trading will never be the same. The technique entails identifying ultra-low-risk trade set-ups on, say, the one-minute bar chart, and then initiating trades in places where competition tends to be thin.

Most important of all, Rick will teach you how to develop market instincts (aka “horse sense”) by observing the markets each day from the fixed vantage point that only a rigorously disciplined trading system can provide.

The three-hour Hidden Pivot Course is offered live each month. If it’s more convenient, you can take it in recorded form at your leisure, as many times as you like. The course fee includes “live” trading sessions (as opposed to hypothetical ‘chalk-talk’) every Wednesday morning, access to hundreds of recorded hours of tutorial sessions, and access to an online library that will help you achieve black-belt mastery of Hidden Pivot trading techniques.

The next webinar will be held on Tuesday, April 17. Click below to register or get more information.

Knowledge Base Link
Show Buttons
Hide Buttons