Goldman says the stock market is about to go on a wild ride and gives a trade to capitalize on the volatility

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Goldman says the stock market is about to go on a wild ride and gives a trade to capitalize on the volatility
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October has been a choppy month for markets historically as companies come under pressure to deliver on year-end expectations, the firm said.

Goldman Sachs expects the stock market is about to get even more bumpy from here — and recommends ways for investors to capitalize on the turbulence. "We expect volatility to increase over next few weeks," John Marshall, head of derivatives research at the firm, wrote Monday. October has been a choppy stretch for markets historically, according to Marshall.

"While some consider it a coincidence that major market corrections have occurred in October, we believe performance pressures for company managements and investors exacerbate shifts in investor sentiment at this time of year," Marshall wrote. He recommends investors buy VIX October calls to hedge the risk of rising volatility.

 

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