Opening Session Alert

GS Trading Flat

By Bryan Bottarelli
Tuesday, December 12, 2006 9:34 AM EST
Tue, 12 Dec 2006 14:34:00 GMT

Dear Bottarelli Research Member,

This morning, Goldman Sachs (GS — NYSE) reported net revenues of $37.67 billion and net earnings of $9.54 billion for the year ended November 24th. That equates to $19.69 per common share, an increase of 76% over last year’s $11.21.

For the 4th quarter, GS reported earnings of $6.59, soundly beating the estimates of $6.00, and coming in 93% above last quarter’s number of $3.26. But strangely, GS has been trading flat for most of the morning. The stock, in fact, has traded both to the upside and to the downside in pre-market activity, which means that traders are not sure what to make of GS’s blowout quarter. Let’s try to take advantage of this indecision by placing a $4.00 sell order on your GS January 220 Calls (GPY AD). Perhaps the opening day volatility will get our orders filled.

PLAY: Sell your GS January 220 Calls (GPY AD) at or above $4.00, good for the day.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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