Trade Alert – (GS) October 17, 2025 – EXPIRATION AT MAX PROFIT

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (GS) – EXPIRATION AT MAX PROFIT

EXPIRATION of the Goldman Sachs (GS) October 2025 $700-$710 in-the-money vertical bull call debit spread at $10.00

 

Closing Trade

10-17-2025

expiration date: October 17, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 12 contracts

As I expected, Goldman Sachs (GS) delivered blockbuster earnings on Wednesday, allowing the stock to hold up well in an otherwise weak market. Financial markets have been weak all month on fears that the Fed may delay another interest rate cut at its October 29 meeting.

As a result, this trade is now $57.93, or 8.16% in the money.

Just to be clear, this position does not expire until 4:15 PM on Friday, October 17.

As a result, you get to take home $1,200 or 11.11% in 16 trading days.
Well done, and on to the next trade.

You don’t have to do anything with this expiration.

Your broker will automatically use your long position to cover your short position, canceling out the total holdings.

The entire profit will be credited to your account on Monday morning, October 20, and the margin freed up.

Some firms charge you a modest $10 or $15 fee for performing this service. The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.

I think that the falling interest rate play could work for another year. Now that we are in a full-fledged jobs crash, it can’t go any other way.

Look at every banking and financial stock chart in the market, and they are all breaking out to the upside. It is clear that traders believe a Fed interest rate cut on September 17 will be followed by many more. Banks and financials are among the biggest beneficiaries of falling interest rates.

This was a bet that (GS) would not drop below $710 by the October 17 option expiration in 16 trading days.

Here is the specific accounting you need to close out this position:

EXPIRATION of 12 October 2025 (GS) $700 calls at………….…$67.93

EXPIRATION of short 12 October 2025 (GS) $710 calls at…….$57.93

Net Proceeds:………………………….……….…………………………..…$10.00

Profit: $10.00 – $9.00 = $1.00

(12 X 100 X $1.) = $1,200 or 11.11% in 16 trading days