Goldman’s option trade recommendations: APO, ACN, CLL calls
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Goldman Sachs analysts published three other options trade recommendations ahead of important events in the near-term.
John Marshall, head of derivatives research in Goldman Sachs, said in a note that single stock notional options volumes have declined over the past three months due to a significant decline in Nvidia (NVDA) volumes, which account for 14% of all S&P 500 (SP500) volumes.
Nvidia (NVDA) options have traded $51.7B notional on the average day over the past three months – 1.8% of its market cap.
“We see this as an indicator of reduced risk-taking appetite among individual and hedge fund investors,” he said, and added that “while volumes are currently at low levels we see potential for an increase given the typical seasonal pick-up in volatility during October.”
The average notional daily volumes for both shares and options have historically peaked in October, he said. October is an important month for trading activity due to the earnings season coming up, and because companies tend to manage performance to year-end and to provide guidance for the upcoming year.
Also, the mega-caps (MGK), (MGC) and semis (PSI), (USD), (SSG) continue to dominate single stock options volumes, caused by the growth of AI.
Goldman analysts recommended a Tesla (TSLA) options trade idea – Oct. 24, $255 calls recently offered at $17.79. Read more about it here.
Here are the other three options trade recommendations:
APO 4-Oct Weekly $126 calls recently offered at $2.39 (1.9%, stock $125.13).
Apollo Global Management (NYSE:APO) will host an Investor Day Oct. 1, where it is expected the company will speak about fee-related earnings and spread-related earnings growth targets, third-party fundraising, and insurance flows, according to Goldman Sachs asset managers and capital markets analyst Alexander Blostein.
ACN 4-Oct Weekly $340 straddles recently offered at $19.15 (5.6%, stock $339.62).
Accenture (NYSE:ACN) is expected to see a modest upside in its upcoming earnings and its guidance amid low investor expectations, said Goldman Sachs telecom and IT services analyst James Schneider.
CCL 4-Oct Weekly $19 calls recently offered at $0.73 (3.9%, stock $18.73).
Goldman Sachs lodging and leisure analyst Lizzie Dove said she is “bullish” on Carnival (CCL) ahead of earnings report due to expectations of a healthy consumer demand environment.