sponger

How to Profit from Goldman Sachs

Well, you gentlemen have been at it enough now, don't you think? Regardless of the intracacies of current common and strike prices, and the ins and outs of virtue as a pair trade, the notion of buying GS preferred and buying puts on the common or shorting it is not a bad idea. Even today (1/15/09) and yesterday we saw enough volatility in the finance sector to illustrate continuing turmoil owing to a failed TARP program and delayed transparency in marking to market. I agree with the writer that such turbulence will continue, so it could make sense to leg into this or a similar position. I, for one, would be more tempted to use more expensive ITM puts but save money with a somewhat shorter time frame. .