Now I did leg into GS with some longer dated puts when they did hit $95, which was right at the 20 week moving average, which is trying to turn up (another reason to leg in). Some other points I'd add the 2nd and 3rd legs would be at $105 and $115. Since I'm "working" the longer dated puts I dont mind.
The subject says 'Cheap shot'. Basically yesterday I simply opened up a new spread on GS when it was at $85 (not part of the longer dated puts). Short Feb $95 puts, Long Mar $95 for a Net Debit of $4.20. This is nothing more than a cheapshot hoping for it to bounce up to $95 in the next two days looking to pocket most of the Feb premium which would leave me with some Mar $95's for about $4. Of course as a part of this trade I expect the rally to fizzle out rather quickly. If for some reason the market (and GS) turns down then I suffer no pain in the trade.
Will it work? No clue. Is this even a good trade? Hell if i know.. The way I approach a trade is that I am wrong until the market proves me right. Most people assume they are right when they put on a trade as if they can control the rest of the market. Remember, this is a game of PEOPLE played with NUMBERS, just like cards. Most assume these are games of numbers played with people.
Edit: If GS just rips it to the upside then they just suck and I'll have to figure out how to work the Mar $95 puts, even if that means turning it into a bull put spread (ie. sell the $100's or something)
