As long as we’re talking about Dow 14969 today, we might as well reconsider the case for Goldman getting to 205.09. If I’d been a true believer when I first broached that target, I’d have suggested buying Thursday’s dip to a 144.68 midpoint pivot that now looks like support. Maybe we’ll get lucky and GS will relapse one more time to the red line. If not, we can try to get aboard at higher levels, or to buy the July 195-200-205 butterfly for cheap. It closed yesterday for 0.18, but since the best we could hope for on the exit would be around 1.50-2.00, I’d suggest paying no more than 0.05. You can buy the spread 50 times at that price, but if you can leg it on for nothing, I’d shoot for 250 spreads. Stay tuned in the chat room, since I’ll try to signal any opportunities that would enable us to do this for nothing in smaller pieces. _______ UPDATE (March 18, 12:44 p.m. EDT): Let’s acquire some bullish butterflies in Goldman, since we’ve got a $205 rally target to work with and a criminally rigged options market that begs to be chastised. We’ll leg into this position, first by bidding 0.12 for 20 July 195 calls. Since DaSleazeballs are showing a 0.08 bid, we’ll be improving on it by 50%. We’ll leave the bid in until they cut our market with a higher bid. Un the end, we are shooting to buy the July 195-200-205 call butterfly twenty times for free or perhaps a small credit. It would leave us long 20 July 195s and 205s, and short 40 July 200s. The current market for it is -0.27 bid (i.e., a credit), 0.20 asked. If you put up a 0.15 bid, you could probably “buy it now,” but why risk $300 on the position if we can get it for nothing? Maximum profit, practically speaking, would probably be around $225 per spread, so we’re shooting for a $4500 total payoff. My gut feeling is that the odds against GS hitting $200 by July are no worse than 3 to 1, and that’s why I like the bet. Check the chat room for the latest updates. At 1:31 p.m., I advised raising the bid for the July 195 calls to 0.15, since the market makers one-upped our 0.12 bid. ________ UPDATE (March 22, 1:57 p.m. EDT): Subscribers are reporting fills at 0.15 in the chat room, so let’s move to phase two of the process, offering 20 July 200 calls short for 0.15. Leave the order in g-t-c, since it will gain priority if it stays on the books for a while. The stock will have to rally some to get us filled. Please note that we are no longer attempting to leg into a butterfly spread, but rather a ‘free’ vertical bull spread.
