Goldman Sachs (GS) Offering Possible 16.01% Return Over the Next 27 Calendar Days

Goldman Sachs's most recent trend suggests a bullish bias. One trading opportunity on Goldman Sachs is a Bull Put Spread using a strike $200.00 short put and a strike $190.00 long put offers a potential 16.01% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $200.00 by expiration. The full premium credit of $1.38 would be kept by the premium seller. The risk of $8.62 would be incurred if the stock dropped below the $190.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Goldman Sachs is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Goldman Sachs is bullish.

The RSI indicator is at 45.92 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Goldman Sachs

TSMC’s $15 Billion Splurge Galvanizes Hope of 5G-Led Rebound
Fri, 18 Oct 2019 02:30:03 +0000
(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s plan to spend as much as $15 billion on technology and capacity in 2019 — roughly 50% higher than originally envisioned — is spurring hopes that the dawn of fifth-generation networks will rev up global chip and smartphone demand.The primary chip supplier to Apple Inc. told investors it’s sharply increasing its estimate for 2019 capital expenditure to between $14 billion to $15 billion from as much as $11 billion previously, and Chief Financial Officer Wendell Huang said 2020 spending will be similar. The Taiwanese company also projected current-quarter revenue ahead of estimates, an affirmation that the latest iPhones have proven a hit with consumers.Chief Executive Officer C. C. Wei sketched out hopes that the emergence of 5G, the foundation of future technologies from automated factories and smart homes to blazing-fast consumer electronics, will help underpin its business in coming years. TSMC, which is the world’s largest contract chipmaker, and is seen as a barometer for the tech industry thanks to its heft and place in the supply chain, said the advent of 5G-enabled smartphones will result in more chips in devices than before.“We are much more optimistic than six months ago,” Wei said, adding that the 5G momentum was larger than the company expected. TSMC has increased its forecast of the 5G smartphone penetration rate in 2020 to a percentage in the mid-teens from its previous single-digit estimate. Many countries, especially larger ones, were rapidly pushing ahead with 5G rollout plans, Wei added.TSMC Puts All Its Chips on Capex. That’s a Smart Bet: Tim CulpanTSMC’s capital spending plan and outlook prompted price-target hikes from several analysts including at Goldman Sachs and Morgan Stanley. Its shares, which notched a lifetime high just this month, stood largely unchanged Friday in Taipei. More broadly, suppliers including ASML Holding NV, Applied Materials Inc. and Tokyo Electron Ltd. could stand to benefit from TSMC’s capex increase.In addition to 5G, TSMC’s push is driven by growing demand from tech giants such as Apple and Huawei Technologies Co., said Roger Sheng, a semiconductor analyst with Gartner. Although the outlook remains uncertain for 2020, the global semiconductor market is set to make a gradual recovery on the back of the demand related to 5G, AI and automotive applications, according to a note from TrendForce on Oct. 2.“Everyone is waiting to see a bounce back of global smartphone market next year after Apple adopts 5G. The self-designed Huawei chipsets will also push demand, as will Qualcomm’s 5nm chips for next year and AMD’s server chip demand,” Sheng said.On Thursday, TSMC also underlined expectations that Apple, its largest customer, is riding a bounce-back in demand for the iPhones after a lukewarm 2018 iteration. Lower prices and aging handsets are helping drive demand for the iPhone 11 range, and Apple is said to be asking its assemblers to target the high end of an original forecast for 70 million to 75 million unit shipments in 2019.Read more: Apple’s Lower Prices, Users’ Aging Handsets Drive IPhone DemandThe Taiwanese company foresees revenue of $10.2 billion to $10.3 billion in the pivotal December holiday quarter, surpassing an average projection for about $9.9 billion. TSMC gave that sales outlook after reporting net income of NT$101.1 billion ($3.3 billion) for the September quarter, handily beating estimates as the global chip market recovers.Still, fallout from ongoing trade conflicts could crimp an industry revival. While TSMC doesn’t factor trade conflicts into its capex plans, any international trade war will have a negative effect on the semiconductor sector, Wei said. China is an especially important market for TSMC and the semiconductor industry, he added.TSMC and its industry peers had grappled with a plateauing smartphone market, efforts by Apple to move beyond hardware, and U.S. tech-export curbs on No. 2 customer Huawei. But investors are growing more confident that the emergence of 5G will prop up chip prices and demand, while the latest iPhones are firing up consumers. TSMC is in fact straining against capacity constraints in the current quarter, Sanford C. Bernstein analyst Mark Li said.The “iPhone is driving stronger near-term demand. We believe the competitive pricing of iPhone 11 is garnering good traction and has prompted Apple to place more orders at the supply chain,” Li said in an Oct. 10 note.Read more: Taiwan’s Market Fortunes Are Tied to TSMC Like Never Before(Updates with analysts’ hikes and shares from the fifth paragraph)To contact the reporters on this story: Debby Wu in Taipei at dwu278@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

UPDATE 1-Goldman wants traders to be more like dealmakers and coders
Thu, 17 Oct 2019 22:44:07 +0000
Over the past decade or so, Goldman Sachs Group Inc has watched its annual trading profits fall 84%, as post-financial crisis regulations upended Wall Street. Now, bank executives are hoping they have figured out the key to a turnaround: asking traders to be more like investment bankers. Goldman plans to invest as much as $200 million in securities division technology over the next three years, a person familiar with the matter said.

Fed’s Williams says central bank would adjust plan to soothe funding markets ‘as appropriate’
Thu, 17 Oct 2019 22:23:00 +0000
New York Fed President John Williams said the U.S. central bank was confident in its measures to deal with funding market strains.

Goldman Explores Sale of Puerto Rico Toll Roads Stake
Thu, 17 Oct 2019 19:59:58 +0000
(Bloomberg) — Goldman Sachs Group Inc. is seeking buyers for its 49% stake in a Puerto Rico toll road concession that could value the asset at more than $2 billion, according to people familiar with the matter.Goldman is working with advisers to solicit interest from potential suitors for Autopistas Metropolitanas de Puerto Rico LLC — known as Metropistas, said the people, who asked not to be identified because the talks are private. A representative for Goldman declined to comment.The infrastructure-investment arm of the New York firm acquired 55% of Metropistas in 2011, alongside Spain’s Abertis Infraestructuras SA. It sold 6% to Abertis in 2014.Toll roads have been an asset favored by infrastructure investors across the globe, in part due to the perceived stability of revenues from drivers dependent on a route.Abertis and Goldman have the right to operate two toll roads until 2061: the 83-kilometer PR-22, which connects San Juan with Arecibo; and the 4-kilometer PR-5, which runs through San Juan. The combined annual earnings of the roads is more than $100 million before interest, taxes, depreciation and amortization, one of the people said. Traffic and revenues have continued to grow despite a challenging economic environment, the person said.In late 2017, Abertis and Goldman donated $1 million toward relief efforts after Hurricane Maria put the toll roads out of operation briefly that September.Last week, Goldman’s infrastructure arm announced the sale of a majority stake in Red de Carreteras de Occidente, one of Mexico’s largest private toll road operators, to Abertis and GIC Pte Ltd.To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.netTo contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Goldman wants traders to be more like dealmakers and coders
Thu, 17 Oct 2019 18:29:41 +0000
Over the past decade or so, Goldman Sachs Group Inc has watched its annual trading profits fall 84%, as post-financial crisis regulations upended Wall Street. Now, bank executives are hoping they have figured out the key to a turnaround: asking traders to be more like investment bankers. Goldman plans to invest as much as $200 million in securities division technology over the next three years, a person familiar with the matter said.

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