Earnings season is officially here when there's a flurry of bank earnings to unpack. This morning, investors are weighing Goldman Sachs Group Inc (NYSE:GS) and Wells Fargo & Co (NYSE:WFC), with the stocks making very different moves on the charts.
GS is down 4.9% to trade at $748.86, even though the blue-chip banker reported adjusted third-quarter earnings of $12.25 per share on $15.2 billion in revenue, both of which topped analyst estimates. The shares are still 32% higher in 2025, and today's drawdown has support in place at their 80-day moving average.
Call traders remain undeterred. At last check, over 18,000 calls have changed hands already today, volume that's quadruple the intraday amount and almost double the number of puts exchanged. The October 800 call is the most popular, followed closely by the 790 call in the same standard series.
WFC is bucking the broader market, last seen up 3.9% to trade at $82.00. The company's third-quarter adjusted earnings of $1.66 per share on $21.44 billion in revenue handily beat estimates, with the shares trading as high as $82.79 out of the gate. The company also posted a 9% rise in profit for Q3. The stock has staged a nice bounce off its 126-day moving average, and is now up 16% year to date.
At last check, over 56,000 options have crossed the tape, volume that's 4 times the average intraday amount. The October 84 call leads the way, while the December 67.60 put is also popular.
With respective Schaeffer's Volatility Scorecards (SVS) at 91 and 85, both Goldman and Wells Fargo have a history of exceeding option trader's volatility expectations during the past year.
