On Friday’s CNBC’s Options Action, the crew analyzed Goldman’s recent rally after the election. Currently trading at more than 40% above of its 100D Moving Average, it has only reached such an extreme once historically, after the 2009 financial crisis. Additionally, the last time it hit such extremes, the company was more profitable and less extended from a valuation perspective. Expecting this stock to move lower, or at least halt its move higher, Michael Khouw suggested selling a Jan 240/250 Put Spread for $4.00 Credit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action