business newsIs Stable the New Sexy for 2013? Trading Goldman Sachs Earnings
By
Andrew Keene
Jan 15, 2013 2:05 pm
The expected profit increase can be attributed to a renewed emphasis on investment banking and asset management in the post-proprietary trading era of Goldman Sachs.
PRINT
Consensus expectations are for an 81% net income increase in Q4 for Goldman Sachs (NYSE:GS), but don't bank on any large earnings swings here. Tomorrow's pre-market report is expected to reflect a net income of $1.78 billion on $7.91 billion in revenue, or $3.70 in earnings per share.
The profit increase can be attributed to a renewed emphasis on investment banking and asset management in the post-proprietary trading era of Goldman Sachs, making for greater stability and less earnings volatility. In Q4, Goldman Sachs also focused on divesting itself from the developed world to pursue what it perceives to be higher growth opportunities in emerging markets. Finally, a continued emphasis on expense control should contribute to an improved bottom line performance for the quarter.
My Trade: Selling the GS Jan 140-145 Bear Call Spread and selling the GS 135-130 Bull Put Spread for $2 total.
Risk: $300 per 1 lot
Reward: $200 per 1 lot
Breakeven: $133 and $142
Risk: $300 per 1 lot
Reward: $200 per 1 lot
Breakeven: $133 and $142
No positions in stocks mentioned.
Daily Recap
Everything you need to know for the next trading day.
Trading Radar (weekly)
Your road map to all the events that will effect financial markets in the week ahead.
Name
Email
*
Phone
* required field
