GS

Our option position is showing a theoretical profit of $1,180, but there is another $1070 of potential gains over the next two days if the stock ends the week at 115. The profit would even higher -- around $2680 -- with GS at $120. You can exit between now and Friday, but officially we'll close out the position just before the April calls expire. There is no reason to try and squeeze the last dime from this trade, but keep in mind that a haphazard exit could cost you $300 or more of otherwise easy gains. A well-managed exit implies exiting both sides of each calendar spread at the same time, about midway between the bid and offer.

Friday's $10 thrust was a short-squeeze truly worthy of the name, since it came on news that the company plans to float a zillion new shares while the gettin's good. We hesitate to predict how high the squeeze will go, especially with index futures evidently under pressure Sunday night. But our hunch is that stocks will get dragged higher by Goldman rather than the other way around. If so, look for the rally to continue to at least

Having bought two April 130 calls the other day for 1.34, we can offer two April 135 calls short risklessly. Let's ty to sell them for 1.14, day order. If successful it will extend the range over which our existing position would be profitable while reducing its cost.

At the peak of Friday's rampage, the short squeeze in Goldman had gained 65% from early March's lows. Our target most immediately is 120.34, but if the stock gets past it by more than 20 or so cents, look for the rally to continue

Poised precisely at a midpoint resistance at 110.45, Goldman looks extremely likely to pop to exactly xxx, and soon. However, it is too risky for me to suggest that you simply buy calls at-the-market on the bell, since prices are likely to be rigged and rapacious on the breakaway gap we might expect. We already hold two July 115-April 115 calendar spreads for 6.o0 that are quite profitable,

The correction went no lower than 100.46 overnight, so we did nothing on the order. The good news is that with Goldman creeping toward the 115 strike and the month of April just hours away, our spread position is fattening just as we might have expected. It could be exited for as much as $10 at the moment, yielding an $800 profit on just two spreads, but we'll let it ride for now, since 115 may act as both a magnet and a leash on the stock