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.

Last weekend we wrote that in Europe's attempt to contain the greatest refugee crisis since WWII, it would directly take control over the border control of the one country which over the summer lost its sovereignty (but at least it still has the euro), and which serves as a springboard for tens of thousands of migrants to proceed onward with their journey to Germany (where as reported earlier, they are no longer desired, as their continued arrival results in a plunging approval rating for Angela Merkel).

In case you were confused how it is that Donald Trump's polling numbers could increase following his Muslim-ban comments (which have beeen widely denigrated by any and all talking head who can fog a mirror - from The White House down...), here is the "surely not us?" answer.

Earlier this week, a rather amusing piece appeared on Sputnik entitled “Ahead of the Game: Russia Moving Faster in Syria Than US Media Can Report.” In it, Russian media outlined five steps US diplomacy expert Robert Farley thinks Russia will take next in Syria. The point of the article is this: Russia had already taken four of the five steps by the time Farley produced his list. 

Submitted by David Stockman via Contra Corner blog,

The chart below crystalizes why the Fed is stranded in a monetary no man’s land. By the time of next week’s meeting the federal funds rate will have been pinned at about 10 bps, or effectively zero, for 84 straight months.