Goldman Sachs shares 21 ETF option trades to make — including 3 it expects to return more than 500% — amid one of the most attractive options environments it's seen in 27 years
Goldman Sachs says there's rarely been a better time to buy options over the last 27 years.Most of the ETFs have over 100% call-option implied returns. , according to Goldman Sachs.
"Our GS-EQMOVE model suggests calls and puts are more attractive than in over 90% of months over the past 27-years," a team of analysts led by John Marshall said in the note. For example, on the upside, the Goldman model says there's a 22% chance the S&P 500 gains 5% in the next month, while the options market says there's a 7% chance that happens. Compared to the last 27-year period, those two percentages are fairly out of sync, meaning options are cheaply priced by Goldman's standards.In the note, the analysts gave concrete trade suggestions on how to capitalize on the favorable environment.
"For example, our analysts cover 73% of the weight of the iShares NASDAQ Biotechnology ETF and have a weighted average upside to price target of +40.8%; this implies a return of 769% on buying an IBB Oct 2023 at-the-money call for 4.7%," Marshall said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goldman Sachs says this underperforming e-commerce stock can rally more than 30% going forwardThe firm says shares can rally 31.6% over the next year
Read more »
Goldman Sachs trims US recession odds next year to 20%Goldman Sachs economists lowered their probability of a U.S. recession within the next 12 months to just 20%, citing better-than-expected economic data.
Read more »
Ex-Goldman Sachs exec alleges employees often cried: reportAn ex-Goldman Sachs exec reportedly said a cut-throat culture led to long hours and burnout. Goldman said if the employee felt pressure, 'it was self-generated.'
Read more »
USD/CAD trades with positive bias above 1.3200 mark, lacks bullish convictionThe USD/CAD pair kicks off the new week on a positive note and builds on Friday's goodish recovery move from sub-1.3100 levels, or the lowest since Se
Read more »
GBP/USD Price Analysis: Trades with modest intraday gains below 1.3100, bullish bias remainsGBP/USD Price Analysis: Trades with modest intraday gains below 1.3100, bullish bias remains – by hareshmenghani GBPUSD Fed BOE Technical Analysis Currencies
Read more »
Silver Price News: XAG/USD pares intraday losses near $25.00 on upbeat options market signalsSilver Price News: XAG/USD pares intraday losses near $25.00 on upbeat options market signals – by anilpanchal7 Silver XAGUSD Options Markets RiskAversion Silver
Read more »