The Goldman Sachs Group, Inc.is one of the biggest global investment banks in the world. Marcus Goldman established the company in 1869.
Goldman Sachs Stocks Binary Options Trading
Today, Goldman Sachs offers investment managements services, corporate client service, investing and lending as well as securities investment and management.
Goldman Sachs stocks trade on the New York Stock Exchange under the ticker symbol GS.
Why trade Goldman Sachs Stock
• Lowered risks and uncertainties
Following the financial crisis, there was great uncertainty in the financial industry with many investors abandoning or selling their stock in financial institutions. Goldman Sachs has since then shown great recovery and even entered into a settlement with the Federal Housing Finance Agency (FHFA) to eliminate bad mortgage investments from the company’s portfolio.
• Better performance compared to competitors
Goldman Sachs is the undisputed leader in investment banking and continues to perform better than its counterpart such as JP Morgan does. In its Q12015 report, trading revenues grew by 23% from $4.45 billion to $5.46 billion, compared to JP Morgan’s 15% trading revenue growth in the same quarter. The fact that Goldman Sachs is doing better than its counterparts is a good sign. In general, this quarter Goldman Sachs’ investment-banking division reported its most impressive performance since 2007.
• Solid stock performance
Since the start of 2015, Goldman Sachs shares have performed generally well in an increasingly volatile financial industry. The company’s shares have risen by 3.8% compared with a decline of 0.9% declines in the Keefe, Bruyette and Woods (KBW) in the same period. The KBW is an index of bank stocks, comprising of 24 banking firms.
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Type of available binary options for Goldman Sachs Stock
The common binary options contract types for Goldman Sachs stock are:
• Basic Call/Put options: You need to predict whether the price of Goldman Sachs stock will move up or down prior to the expiry time.
• Touch options: You are required to predict whether the price of Goldman Sachs stock will touch the given strike price prior to the expiry.
• In/Out: You need to predict if the price of Goldman Sachs stock will remain within a range of two strike prices
Possible signals for Goldman Sachs Stock
• Goldman Sachs has released its first quarter report, which shows a rise in profits beyond analysts’ expectations against the background of a volatile financial market. The bank reported profits of $2.84 billion, an equivalent of $5.94 per share compared to analysts’ expectations of $4.26 per share.
• Goldman has been forced to wrap up its investments in lucrative coalmines in Columbia. This signifies the end of the bank’s ventures as a producer of raw materials. This could have an impact on the bank’s investment earnings and consequently on its stock.
Factors Influencing Price of Goldman Sachs Stock
• Regulatory compliance pressures- Mounting regulations and demands to grow reserves are having an adverse impact on the banking sector
• Increased volatility in the financial markets
• Fluctuating value and volume of trading in securities in the financial industry
• Growing competition from commercial banks which are increasingly offering investment banking solutions