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Good As Gold?

Goldman_Sachs_Building2.jpg

Talk about a turnaround. On March 12th, Dan Nathan suggested selling Goldman Sachs stock and replacing it will an April 180/190 call spread.

At first, the trade wasn't really working, but in the last three days, that package has doubled in value.

So what's his next move?

"Sell," said Nathan, atop his perch at Phoenix Partners Group. "At this point, you're risking $5 to make $5, so the risk-reward isn't really that attractive now, and expiration is just two days away."

The trade was a hedge of sorts against possible poor results from JPMorgan and Bank of America.JPMorgan knocked it our of the park, and Bank of America is trading higher today.

Specifically, Dan bought the April 180-strike call for $4.00 and then sold the 190-strike call for $1.20, net-net shelling out $2.80 to make a possible $7.20 by April expiration. That package can be sold for about $5.40 given today's option prices.

Questions, comments send them to us at: optionsaction@cnbc.com

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    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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