Goldman has an options strategy that pays off if these three giants move big in either direction on earnings

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Here's an investment strategy using stock options for three Wall Street heavyweights ahead of their quarterly earnings.

Goldman Sachs is eyeing some Wall Street heavyweights that are ripe for straddle-buying opportunities. In a Wednesday note, the firm issued a list of stocks that could outperform or underperform heading into their quarterly earnings. Some of the bigger names that stood out include Walmart , Nvidia and Facebook-parent Meta Platforms . Goldman thinks all three companies could face strong volatility on earnings day, especially since mutual funds are underweight on the stocks.

mountain META is among the slate of tech stocks that made the Goldman list, and the company has an implied earnings day move of 9.8%. Meta will report quarterly earnings on April 26 after the closing bell. Shares have been on fire this year, with a gain of nearly 80%. The company followed through with a planned slate of layoffs earlier on Wednesday , which is concentrated largely on technical employees.

mountain Goldman Sachs is also watching chip maker Nvidia for a $33.50 at-the-money straddle. In semiconductors, shares of Nvidia have posted a staggering 90% gain from the start of the year. The company is also delving deeper into artificial intelligence investments, which drove an upgrade on the stock from HSBC on Tuesday . The company will report earnings on May 24 after the market closes. Goldman suggests a $33.50 at-the-money straddle which expires on May 26.

 

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