We love Goldman Sachs (GS: $232) and believe big things will happen in the future. But a few weeks ago we said we are removing it from the portfolio if it hits $234. Well, yesterday it did and it is trading at $232 today as we write this. Having added the stock at $147 in February of last year, we’ve had good run. But we are going to book this 58% gain.
As to what YOU do with your stock, that’s up to you of course. If you don’t feel this is the time to sell, you can put a stop in at a lower price, say $225 or $220, and see what happens. If it goes lower, you will lose a little bit of your gains. But if it goes higher, you can gloat back to us at The Bull Market Report!
If you are options-oriented, you could sell a call against your stock which would bring in some cash, lowering your cost basis and giving you some room for it to start moving higher. For example, if you sell the June $240 call, you could bring in about $10 a share. If you sell the $250 call, you could bring in about $7. You will be obligated to sell at these strike prices, so be wary. In any case, there are lots of “options” for you! Please consult your broker about selling options.
We will be looking at the Financial sector in the coming month. Stay tuned.