This subpoena of Goldman has been one of the most telegraphed events. There have been press reports, articles and even an analyst downgrade surrounding a possible indictment. Over that period the stock price has dropped precipitously.
Goldman's tangible book value is expected to be $133 at the end of this year. The puts I sold would put me in the stock with a cost basis below $124. Even assuming this indictment costs them a pretty penny and estimates miss I should still be in the stock below tangible book. The CEO has said the company has excess capital and wants to buy back stock aggressively but first wants to settle legal matters.
Goldman Sachs is not the money machine it used to be nor do I think it will return to its former glory. But its still worth tangible book.