Stock, Option and Futures Trading
Watching GS for Weekly 120 Calls
GS is another one that could make a good move this week. If GS takes out the $117.04 level the Weekly 120 calls would be a good way to play it. The calls closed today at .33 cents. The days range on the option was from .09 cents to .35 cents.
Target 1: $121
The stop is the entire option at this point until GS makes a move.
The range of the GS option today is a good example of why I do not place stops at the time of entry on a weekly option. The weekly options move too fast and would have high odds of getting stopped before the move even happens up OR down.
PS. We played GS long on this blog for +24.00 from the lows.
If you follow us you should have profits that makes it easier to roll into weekly calls and risk the entire option. What is the difference of buying a $2.00 option with a stop at $1.65 risking .35 cents or risk the entire option at .35 cents? Nothing, and that is the way we look at weekly options.