Thankfully, I come from a background in finance so when bulge bracket investment bank analysts start rattling off jargon, we can clear the mud up a little bit.
Long story short, the story discusses how Goldman Sachs (Ticker: GS) analysts feel the 2011 Detroit Auto Show *may* play a larger role this year due to expectations of domestic auto industry turnaround. Because the rhetoric automakers will be telling analysts present at the show, it is possible that shares of General Motors (Ticker: GM) and Ford (Ticker: F) will see more volume during trading in the upcoming weeks.
That's because when research analysts are at the show hearing about all the pretty things that domestic manufacturers are forecasting for 2011, that information will eventually be relayed to the market, also known as investors.
If you're going to make a move, today would probably be the best day.
**For the FULL details on Goldman's suggestion, click "Read Article." It's a nice read if you want to go through equity derivatives 101
Investors should buy options "straddles" on Ford Motor Co. and General Motors Co. because the Detroit auto show may be a bigger catalyst for stock moves than it has in the past, Goldman Sachs Group Inc. said.
Equity derivatives strategists John Marshall and Maria Grant recommended buying Ford's February $17 straddles and GM's February $38 straddles. A straddle involves the purchase of a call and put with the same strike price and expiration and is a bet that the stock's volatility will rise. Calls give the right to buy a security and puts give the right to sell...
[Source: The Detroit News]
2011 (CES) Consumer Electronics Show Photo Gallery
2011 Detroit Auto Show Preview Photo Gallery
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