4 Trade Ideas for Goldman Sachs: Bonus Idea

• Posted by Greg Harmon
• on February 5th, 2024

Here is your Bonus Idea with links to the full Top Ten:

Goldman Sachs, $GS, comes into the week pressing against resistance in consolidation. The Bollinger Bands® have squeezed in, a precursor to a move. The RSI is starting back higher after a reset lower while the MACD looks ready to turn towards a cross up. There is resistance at 389 and 393 then 401 and 407 before 411 and 420 then 424. Support lower sits at 381 and 376. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 2.84% and will begin trading ex-dividend on February 28th.

The company is expected to report earnings next on April 16th. The February options chain shows the biggest open interest at the 370 put strike then 380 and 360. On the call side it is biggest at 410 then 400. In the March chain open interest is sizeable at 380 then builds from 365 to a peak at 350 on the put side. On the call side it is biggest at 360 and 350. Finally, the April chain has biggest open interest at 380 and 350 on the put side, and at 370 and 400 on the call side.

Goldman Sachs, Ticker: $GS

Trade Idea 1: Buy the stock on a move over 389 with a stop at 376.

Trade Idea 2: Buy the stock on a move over 389 and add a March 375/360 Put Spread ($3.30) while selling the March 410 Calls ($2.90).

Trade Idea 3: Buy the February/March 400 Call Calendar ($3.40) while selling the February 375 Puts ($1.85).

Trade Idea 4: Buy the April 360/390/405 Call Spread Risk Reversal ($1.00).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into February, sees Punxsutawney Phil is calling for the weather to get warmer and equity markets are looking downright hot.

Elsewhere look for Gold to continue the short term consolidation while Crude Oil falls back into consolidation. The US Dollar Index continues to drift to the upside in consolidation while US Treasuries consolidate after a pullback. The Shanghai Composite looks to continue the downtrend while Emerging Markets consolidate over support.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. The charts of the SPY and QQQ look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY have reset on momentum measures are now also better to the upside. The IWM continues to blaze its own trail, remaining in the 22 month channel. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus