Seeking Alpha

Goldman: Long call strategies could pay off this earnings season

  • "Options markets suggest this will be one of the most important earnings seasons in 10 years for stock pickers given low expected correlation and limited pre-positioning," says Goldman analyst John Marshall.
  • "We expect outsized profitability for call buying strategies on single stocks this quarter," he adds, noting options markets are actually pricing in a lower earnings-day move than any time on record for the average stock. "We expect earnings surprises to spark unexpectedly large stock moves."
  • The average earnings-day move last quarter was 3.5x as large as the average daily move, he says, greater than any other time in the past 17 years.
  • Goldman analysts see above-consensus reports from KORS, RYL, TIF, EOG, PXD, WNR, BBT, BX, LAZ, STI, BMY, THC, CMI, DOW, STZ, ARUN, OLED, QCOM, and XLNX.
  • Goldman's below the Street on ANN, IGT, MAT, COL, JOY, and MSFT.
Comments (11)
  • Goldman has been telling people to buy conviction buys for months and now they killed everybody by downgrading the whole market. Now they have the nerve to tell us this....
    13 Jan, 03:39 PM Reply Like
  • Yeah! They think we are stupid drones. Imagine!!!
    13 Jan, 04:15 PM Reply Like
  • I suspect we have seen this movie before from GS and others who seem to be working their own book of clients? I have no real insight just a personal opinion. Where it written that the "market" needs to have a 10 % or so correction because it is a "healthy " thing for investors? I suspect it is a trader mentality and not a real long term investor mentality?
    13 Jan, 04:02 PM Reply Like
  • I think it is call "pump and dump."
    13 Jan, 04:28 PM Reply Like
  • Amen Hawkeyes!
    13 Jan, 05:02 PM Reply Like
  • Geez, God , I mean goldman , spoke !

     

    Let's all drop to our knees and pray our stocks are on the goldman buy lists.
    If not, you better sell your holdings that "didn't make the cut !

     

    PLEEZE, cut the crap.
    It's like the lemmings selling other good oil stocks and jumping into xom after buffett bought in.

     

    goldman drops a bomb today that the market looks frothy.
    Who the hell do you think will be buying stocks from all the weak hands selling .
    One guess.
    Same game, different year.
    13 Jan, 05:10 PM Reply Like
  • Where is Abby Jo Cohen, Goldman,the queen of contrary indicators? Whatever she says, I will immediately do the exact opposite.
    13 Jan, 09:52 PM Reply Like
  • Goldman is Greer,they cause us all Ito lose with their high and low games
    14 Jan, 06:25 AM Reply Like
  • Goldman is Greed,they cause us all Ito lose with their high and low games
    14 Jan, 06:25 AM Reply Like
  • A lot of people get paid as of Dec 31 so I think "they" held it together (and pumped) for year-end and now we have to give it back. And if this year is a down year the "they" are really genius...
    14 Jan, 06:32 AM Reply Like
  • shelhorse-
    I disagree.
    goldman doesn't care about being "right" or "genius".
    They ONLY care about making $$.
    At Any cost !
    14 Jan, 09:26 AM Reply Like
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