Here's Where The Options Market Thinks The S&P 500 Could Go In 2015

In 2015, every big strategist on Wall Street expects the S&P 500 to rise. 

Some strategists see the benchmark index adding just a few percentage points this year, while others expect the S&P to extend its three-year streak of double-digit gains.

But in a new note to clients Jared Woodard, equity derivatives strategist at BGC Partners, focuses not on where Wall Street’s soothsayers expect the S&P to go but on where the options market says it could go.

And for 2015, there is a wide target, ranging from 1,691.92 to 2,416.68.

“Point forecasts impose false precision; we tend instead to think in fuzzy ranges,” Woodard writes.

“The deviations higher and lower we collectively imply through option market bidding strike a tractable balance between the need for discernible forecasts and honesty about epistemic vagueness.”

We agree. 

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.