Goldman Sachs Group Inc (GS)

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Restructuring Plans, Quarterly Win Boost Goldman Sachs Group (GS) Stock
By: Schaeffer's Investment Research | October 18, 2022

• Goldman Sachs CEO David Solomon warned of a potential recession

• GS could today conquer resistance at the 100-day moving average

Goldman Sachs Group Inc (NYSE:GS) stepped into the earnings confessional today to report better-than-expected third-quarter earnings of $8.25 per share and a revenue win. The bank concern also announced restructuring plans, with the company set to split into three units amid a year-over-year drop in quarterly profits, and rising interest rates that have hurt both deal-making and valuations. Additionally, Goldman Sachs CEO David Solomon warned there is a "good chance" the U.S. economy will see a recession.

Last seen up 4.6% to trade at $320.75, the equity is looking to add to yesterday's 2.2% pop. The shares are bouncing off their lowest level since mid-July, and attempting to conquer overhead pressure at the 100-day moving average. Year-to-date, GS is still 16.7% lower, however.

The options pits have been extremely bearish of late. This is per Goldman Sachs stock's 50-day put/call volume ratio of 1.11 over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 96% of annual readings. This means long puts have been getting picked up at a much faster-than-usual clip.

The tides appear to be shifting, though. So far today, 8,980 calls and 6,603 puts have already crossed the tape, which is five times the average intraday volume. Most popular is the October 330 call, followed by the 325 call in that same series, both of which expire at the close this Friday.

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