Goldman Sachs Group Inc (NYSE:GS) stock is up 2.9% to trade at $919.93 this morning, after the banking institution reported adjusted third-quarter earnings of $17.01 per share on $18.68 billion in revenue, both of which topped forecasts. The top-line beat was fueled by across-the-board rises in equity trading revenue and investment banking fees.
GS set to build some separation from its year-to-date breakeven level today. The shares traded as low as $868 last week, a nearly 25% haircut off their July 15 record high of $1,153.99. Now, the stock is back above its 320-day moving average.
Prior to today's breakout, Goldman's 14-Day Relative Strength Index (RSI) sat at 30, on the cusp of oversold territory.
Options traders have been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), GS' 50-day put/call volume ratio of 1.05 ranks in the 79th percentile of its annual range. An unwinding of this pessimism could provide additional tailwinds.
Today, calls are more en vogue, with the October 1,000 call seeing notable attention, as well as the 960 and 900 strikes in the same series expiring on Friday.
