This morning, GS opened at $118.00. So far today the stock has hit a low of $116.13 and a high of $135.00. As of 12:25, GS is trading at $130.98, down $4.52 (-3.3%). The chart for GS looks bearish, while S&P gives the stock a 4 STARs out of 5 buy rating.
For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $175 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in five weeks as long as GS is below $175 at October expiration. Goldman Sachs would have to rise by more than 33% before we would start to lose money. Learn more about this type of trade here.
GS hasn't been above $175 at all since early August and has shown resistance around $155 recently.
Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in GS.