Call Buying Surging as Goldman Sachs Hits New Highs

GS stock hit a fresh high yesterday

Dec 17, 2019 at 9:58 AM
facebook twitter linkedin

Goldman Sachs Group Inc (NYSE:GS) has benefited from the recent stock market rally, hitting a 52-week high of $230.70 yesterday. During this breakout, call buying has ramped up at the major exchanges. This is according to the 10-day call/put volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) which, at 4.24, ranks in the 100th annual percentile.

The front-month December series saw some of the action during this time frame, but going out further, other traders were opening positions at the January 2020 230- and 250-strike calls. Still, near-term options look attractively priced at the moment, based on the 30-day at-the-money implied volatility of 19.4%, a number that ranks in the low 7th annual percentile, hinting at unusually low volatility expectations at the moment.

Most analysts still have bearish rating on the banking giant, however. By the numbers, seven of 12 brokerage firms have "hold" or "strong sell" recommendations. But it was actually a price-target hike out of Wells Fargo that put GS shares on our radar this morning, as an analyst there bumped their price target to $280 from $240. Goldman Sachs shares this morning are up 0.7% at $229.86.



Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1