CCCI - Goldman highlights 25 tactical options trades for earnings season

The single stock options market indicates investors are unusually fearful going into earnings season, Goldman Sachs says. "The current setup is similar positioning to ahead of the Oct-2021 earnings season when investors broadly expected supply chain difficulties to weigh on margins," John Marshall, head of derivatives research, said in a note Tuesday. "Earnings broadly beat expectations in Oct-Nov of 2021, leading to large relief rallies for stocks." "Based on our conversations this quarter, investors believe that higher interest rates and the conflict in Ukraine have led to lower consumer sentiment and investors are positioned for S&P 500 estimates (ex-energy) to be revised lower." Marshall's team looked to Goldman equity analysts’ fresh estimates and qualitative comments to ID the 25 most out-of-consensus opportunities for the coming quarter with shares expected to move. The options were chosen with the monthly expiry closest to first out of the money calls or puts. Goldman

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Goldman highlights 25 tactical options trades for earnings season