Goldman Sachs Stock Gears Up for Quarterly Earnings

Year-over-year, GS is up roughly 29%

Digital Content Manager
Jan 13, 2022 at 3:22 PM
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A handful of bank names are expected to step into the earnings confessional next week, including Goldman Sachs Group Inc (NYSE:GS). The blue chip was last seen up 0.4% at $391.81, ahead of its fourth-quarter earnings report, which is due out before the open on Tuesday, Jan. 18. Below, we will further explore the equity's technical setup, as well as some of its previous post-earnings activity.

On the charts, pressure at the $413 mark rejected the stock's rally attempt off the $366 level earlier this month. Prior to that, the equity did hit a Nov. 2, record high of $426.15, though, and still has the support of the 200-day moving average, despite briefly dipping below it in late December. Year-over-year, Goldman Sachs stock sports a 29.3% lead.

GS 200 Day

The equity has a history of mostly positive post-earnings reactions, finishing five of eight next-day sessions higher over the last two years, including a 3.8% pop in October. Options traders are pricing in a 3.6% swing for GS this time around, which is bigger than the 1.4% move it averaged following its last eight reports, regardless of direction.

An unwinding of pessimism in the options pits could create tailwinds for GS. The equity sports a Schaeffer's put/call open interest ratio (SOIR) of 1.33, which stands higher than 78% of readings from the past year. In other words, short-term options traders have had a bigger appetite for puts than usual. 

It is also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) sits at 81 out of 100. This suggests GS has exceeded options traders' volatility expectations during the past year.

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