Goldman Sachs Sees Best Time in Two Decades to Buy S&P 500 Calls
Finding Opportunities in a Low Interest Rate World
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It’s the best time to buy bullish options on the Standard & Poor’s 500 Index in 20 years, Goldman Sachs Group Inc. says.
The U.S. benchmark has a 21 percent probability of rising 5 percent in the next month, according to a model by the New York bank that looks at free-cash-flow yield, return on equity, Institute for Supply Management data and capacity utilization. The options market is pricing in only a 5 percent chance the S&P 500 will move as much.