2010-05-06

Goldman puts an interesting bet?

You can't get a put option for less than a $65 strike for Goldman Sachs (GS) for Jan 2012, but Jan 2011 contracts go as low as $2.50.

The last trade was $1 at the $55 strike price, which means you'd have to pay $100 to have the right, but not the obligation, to sell 100 shares of GS for $55 per share, on or before January 21, 2011.

Here's the link to the 2011 contracts, calls are on top, puts below.

If you're someone who spends an average of $2 per week on the lottery, then I think buying a $55 put on GS would be better odds than what the state gives you. To go out to January 2012, you'd need to spend more than $300 for the cheapest contract at the $65 strike.

Update: It looks at though there may be a settlement, which greatly reduces the risk of bankruptcy...

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