Trade Alert – (GS) October 27, 2025 – BUY

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) – BUY

Buy the Goldman Sachs (GS) November 2025 $700-$710 in-the-money vertical bull call debit spread at $9.00 or best

 

Opening Trade

10-27-2025

expiration date: November 21, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 12 contracts

Goldman Sachs has been kind to me this year, so I am more than happy to visit the trough one more time.

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.

The waiting for the year-end rally is over. The Consumer Price Index, released on Friday that came in exceptionally soft at 3.0%. It doesn’t hurt that the Federal Reserve is lowering interest rates on Wednesday by 25 basis points, taking the overnight rate down to 3.75% to 4.0%, the lowest in three years. The weekend trade deal with China is another plus.

With Q3 earnings reports peaking next week, that opens the gates for corporate share buybacks to resume. My own Mad Hedge AI Market Timing Index has been tantalizingly stuck in the 25-30 range for weeks, which usually signals a good time to buy.

The collapse of the Volatility Index ($VIX) from an overnight high of $30 all the way back to $16 is a major plus. We may not get another spike like this for another six months.

What do we buy? Every interest rate-sensitive play out there, even the remote ones.

Therefore, I am buying the Goldman Sachs (GS) November 2025 $700-$710 in-the-money vertical bull call debit spread at $9.00 or best.

Don’t pay more than $9.40 or you’ll be chasing.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by ten cents with a second order.

If you don’t want to sit in front of a screen all day or live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $9.00, $9.10, $9.20, $9.30, and $9.40. You should get done on some or all of these.

This is a bet that (GS) will not drop below $710 by the November 21 option expiration in 20 trading days.

Here are the specific trades you need to execute this position:

Buy 12 November 2025 (GS) $700 calls at………………….$90.00

Sell short 12 November 2025 (GS) $710 calls at…………..$81.00

Net cost:………………………….……….……………………………..$9.00

Potential Profit: $10.00 – $9.00 = $1.00

(12 X 100 X $1.) = $1,200 or 11.11% in 20 trading days

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually, or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.