Options Traders Move In as Goldman Sachs Stock Tops 200-Day

Goldman Sachs is a big winner in today's trading

by Josh Selway

Published on Jun 28, 2019 at 2:39 PM

Bank stocks are having a strong session after U.S. financial institutions passed their stress tests from the Fed. One winner is Goldman Sachs Group Inc (NYSE:GS), who is set to close atop the 200-day moving average for the first time in over a year, last seen trading up 2.4% at $204.12. This price action has sparked interesting GS options trading, too.

gs stock chart june 28

More than 48,000 options have traded, doubling the daily average, and much of this activity is centered at the soon-to-expire weekly 6/28 205-strike call. Others are opening at the weekly 7/5 210-strike call, likely trying to profit on extended upside through expiration at next Friday's close.

Goldman Sachs actually has fairly high volatility expectations surrounding it today, based on its 30-day at-the-money (ATM) implied volatility (IV) of 26%, which ranks in the 70th annual percentile. Over the past year, the security hasn't really surpassed options traders' volatility expectations, since its Schaeffer's Volatility Scorecard (SVS) is at a middling 49 out of a potential 100.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
Huawei Warning Smacks Cree Below Key Trendline
The LED specialist forecast a current-quarter loss on Huawei headwinds
INmune Bio Stock Gains on New "Buy" Rating
The shares hit a record low just last week
IRA/401K Investment Guide: 2019 Stock Market Crash
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.