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"Straddle-Up" Goldman's 'Winning' Options Strategy Into Year-End
As 2015 draws to a close, Goldman identifies 15 straddle-buying opportunities on stocks with liquid options, reporting in December. Our studies analyzing historical earnings events show at-the-money straddles are systematically undervalued ahead of the event. Buying straddles ahead of earnings has returned 10% through early December vs. the long term average of 2%.
As Goldman Sachs writes, our studies analyzing historical earnings events show at-the-money straddles are systematically undervalued ahead of the event.
Buying straddles ahead of earnings has returned 10% through early December vs. the long term average of 2%.
The average cost of a straddle on this list is only slightly above the historical earnings move despite capturing more than a week of trading days outside earnings. We see KMX, ACN and ORCL particularly inexpensive compared to prior earnings moves.
Straddle buyers risk losing the premium paid if shares close at the strike price on expiration.
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Strike price is based on Jamie Dimons, Cohiba clearance? lol
I wonder how many toasters have been mailed to " Lorde BlankFEIN"?
He's clearly not in need of precious metals, or cybercoins?
The real question is.....are you a muppet or are you not?
I'm a "well read" Muppet. :-)
Always respect your elders...
Ahhhh reminds me of the good old days when my favorite massage parlor was named "Straddle Jacks". My second favorite was "Throttle Jockeys"
Second String?
How many dead green bodies in the gutter this time?
Golem Sacks.