Joe Terranova Is Short Goldman (GS)

Tonight on Fast Money, Joe Terranova said that he is shorting Goldman Sachs (NYSE: GS) in expectation that Financial Reform will be passed by the U.S. congress. He said that he is both short the equity and long the $175 puts in the name. Pete Najarian said that he thinks Terranova should buy some upside calls as well to protect him in case the trade does not work out.

Terranova believes that GS is getting a little overextended. He also said that if Financial Reform is passed, Goldman Sachs will be effected negatively. During today's trading session, GS lost 0.98% to close at $176.16. In just the last month, the shares have gained 12.41%, after being under pressure for an extended period of time. In the last 6 months, the stock has lost 5.05%.