Can Goldman Sachs Stock Deliver Another Post-Earnings Pop?

Big banks will unofficially kick off earnings season next week with Goldman Sachs Group Inc (NYSE:GS) chief among them. Goldman's actually up first, set to report first-quarter results before the open on Monday, April 13. Ahead of the event, options traders have been betting bullishly.

At last glance, GS is up 4.2% to trade at $900.69, benefitting from easing geopolitical tensions. The shares are now on track for its sixth gain in the last seven sessions, and are looking to close above the 60-day moving average for the first time since February. The equity sports only a slim year-to-date lead, but has added 94.8% in the last 12 months.

As far as post-earnings reactions go, Goldman Sachs stock could soon enjoy even more tailwinds. The security has settled higher after six of its last eight earnings reports, including a 4.4% pop in January. This time around, the options pits are pricing in a move of 5.8%, regardless of direction, which is far higher than the 2.6% move GS averaged in the last two years.

There's plenty of room for upgrades and/or price-target hikes, should results impress. Of the 26 analysts in coverage, 17 carry a tepid "hold" or worse rating. Plus, the 12-month consensus target price of $934.54 is only a 3.8% premium to the stock's current levels. 

Options traders lean optimistic toward the equity, per its 10-day call/put  volume ratio of 1.49 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 87% of annual readings.