Option Strategies: GS& .SPX

Hello everyone! Today i want to share some option stategies with you!

1.

A stock I NEVER trade is $Goldman Sachs(GS)$ . BUT... it's dropped 150+ pts in the past 4 weeks. If there's a positive reaction to FOMC, GS can bounce 30-40 pts over the next 2 weeks. The risk/reward if favoring the upside if Powell can be nice this week. Here's my trade idea 👇

Trigger: GS above 544✅

Trade idea: GS March 28 560C

Targets: 565,573 🎯

After a 150+ pt drop, GS started to show some signs of a bottom above 524. GS managed to have a green day on Friday and closed somewhat near the 544 resistance. GS through 544 can pop up to 557 before FOMC. If there's a positive reaction to FOMC, GS to 573+ is in play. Let's see if Banks can start to rally higher after a 4 week sell off.

2.

$S&P 500(.SPX)$ Massive week upcoming that will determine the direction of the market over the next 2 months. We have an FOMC meeting on Wednesday. This will be the last one until May. If there's a negative reaction to Powell, we can see one more leg lower in SPX to 5111-5278 range.

We started to see some signs of strength on Friday with SPX gapping up 40 pts and gaining back the losses from Tuesday-Thursday last week. IF SPX can get back above 5700 after FOMC we can see a bounce to 5800-5848 again.

A one day rally still isn't enough to determine if there's a bottom forming yet. We need to see higher lows on the daily chart over the next 3 trading days. If this happens, we can see the market rally back towards 5848-5900 range leading into April. The path of least resistance has been the downside the past month. Will this change after FOMC? We will see.

Big week coming up.. Be ready..