. And with S&P 500 profits widely expected to fall, Wall Street isn't preparing for a party.
"The options market has been slow to price in the increasing size of earnings day moves," equity derivatives associate Vishal Vivek wrote in a note to clients."The average S&P 500 stock moves +/-3.4% on the day of earnings relative to an average daily move of +/-1.1%." They've zeroed in on a group of 20 companies that will report their results by August 16 and where options trading is relatively liquid. They recommend betting on volatility by buying straddles on them. That strategy requires an investor to buy both a put and a call on a stock with the same expiration date and strike price.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goldman Sachs warns investors that a Fed rate cut won't do much for the stock market'A lot of that rise in the market, in my estimation, is already behind us,' says Goldman strategist David Kostin. Folks the Economy May look rosy right now. But it’s not. A recession is likely within the next year. Not sure how bad, but my instinct tell me it’s coming. They are confused. Sure make easier to borrow more money for pet projects
Source: CNBC - 🏆 12. / 72 Read more »
Goldman Sachs warns investors that a Fed rate cut won't do much for the stock market'A lot of that rise in the market, in my estimation, is already behind us,' says Goldman strategist David Kostin. Folks the Economy May look rosy right now. But it’s not. A recession is likely within the next year. Not sure how bad, but my instinct tell me it’s coming. They are confused. Sure make easier to borrow more money for pet projects
Source: CNBC - 🏆 12. / 72 Read more »
Banks should shine among S&P 500 stocks this earnings seasonGet ready, investors: Large U.S. banks are in the best shape they have been in for 30 years, this head of value equity says
Source: MarketWatch - 🏆 3. / 97 Read more »
PepsiCo's stock gains after earnings, revenue rise above expectationsShares of PepsiCo Inc. rose 0.7% in premarket trading Tuesday, after the beverage and snack giant reported a fiscal second-quarter profit and revenue that...
Source: MarketWatch - 🏆 3. / 97 Read more »