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"Straddle-Up" Goldman's 'Winning' Options Strategy Into Year-End

"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.

"Let's Just Hope Shipping Isn't Telling the Real Story of China"

One of the recurring topics we have focused on extensively in the past few months has been the dramatic collapse of all shipping-related metrics when it comes to seaborne trade with China, from the recent record plunge in the Baltic Dry index...

 

... to Shanghai Containerized Freight...

 

... both of which are taking place even as China exports record amount of commodities to the outside world...

 

Brazil Faces Disastrous Downgrade Debacle: Here's What You Need To Know

Brazil Faces Disastrous Downgrade Debacle: Here's What You Need To Know

Back on September 9, S&P threw Brazil in the junk bin. 

“We anticipate that within the next year [another] downgrade could stem in particular from a further deterioration of Brazil's fiscal position, or from potential key policy reversals given the fluid political dynamics, including a further lack of cohesion within the cabinet,” the ratings agency noted, explaining its negative outlook. “A downgrade could also result from greater economic turmoil than we currently expect either due to governability issues or the weakened external environment.”

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