Options Update: Goldman Sachs and Morgan Stanley volatility low into EPS

Posted Jun 15th 2009 8:00AM by Paul Foster
Filed under: Goldman Sachs Group (GS), Morgan Stanley (MS), Options

Goldman Sachs (NYSE: GS) closed at $145.64. GS is expected to report Q2 EPS soon. GS June 145 straddle is priced at $6.10, July 145 straddle is priced at $15.50. GS July option implied volatility of 45 is below its 26-week average of 75, according to Track Data, suggesting decreasing price movement.

Morgan Stanley (NYSE: MS) closed at $29.70. MS is expected to report Q2 EPS soon. MS June 30 straddle is priced at $1.75, July 30 is priced at $4.05. MS July option implied volatility of 54 is below its 26-week average of 91, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: GS, inthenews, MS, option implied volatility, OptionImpliedVolatility