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GS - Goldman Sachs Group $106.12

The Goldman Sachs Group (NYSE:GS) is a worlwide
investment banking, securities and investment
management firm that provides a range of services
globally to a substantial and diversified client base
of corporations, financial institutions, governments
and high-net-worth individuals.

The activities of the company are divided into three
segments: Investment Banking, which is offered to
a diverse group of customers; Trading and Principal
Investments, through which customer transactions
are facilitated, and Asset Management and Securities
Services, whereby the company provides investment
advisory and financial planning services to a diverse
client base.

The share value of GS closed at a 6-week high Friday
after Proctor & Gamble (NYSE:PG) announced a $57
billion deal to buy Gillette (NYSE:G), which will provide
substantial advisory fees to the investment banker.
One industry expert said that Goldman, Merrill Lynch,
and UBS will likely share between $50 million to $95
million in advisory fees, based on similar-size mergers,
and investors were elated with the news. The fresh
buying pressure pushed the price of GS up and out of
a near-term trading range and with the recent bullish
activity in the Financial Services segment, the upward
momentum is expected to continue for the next few
weeks. Traders should enter a higher "net-credit" in
the spread initially, to increase the potential return on
investment.

Fundamentals: http://finance.yahoo.com/q/ks?s=GS&quicken=2

Chart: http://finance.yahoo.com/q/bc?s=GS&t=6m

PLAY (very conservative - bullish/credit spread):


BUY PUT MAR-95.00 GS-OS OI=590 ASK=$0.40
SELL PUT MAR-100.00 GS-OT OI=2177 BID=$0.80


INITIAL "NET-CREDIT" TARGET = $0.45-$0.50

POTENTIAL PROFIT (X 5 contracts) = $225
RETURN ON INVESTMENT (max) = 9.8%
COST BASIS = $99.55
LOSS-LIMIT/EXIT POINT = $101.50 (aggr) - $102.75 (cons)



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