Stock-investing strategy that's made 21% in 6 days over past 18 years - Business Insider

season draws to a close, Goldman Sachs is advising traders to turn their attention to Analyst Days.

These events do not occur with the same periodicity as earnings releases — and that's precisely why Goldman's derivatives strategists see an opening to exploit them. The strategy requires some forward planning. In order to profit, an investor needs to buy call options that bet on higher prices five days before a company's event and then sell the day after.

So far this year, 24 Analyst Days have yielded a gain of 28%. The average stock has increased by 150 basis points through its company's event — more than double the historical average of 70 basis points, Marshall added. Now is an especially good time to exploit this trade, Marshall said. That's because the implied volatility on theis running below trend relative to the past year. What's more, options prices on several individual stocks have cheapened as a result.

More BI clickbait.

Yeah. No. Pass. Sounds too good to be true.

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Tesla stock price boosts Hochschild Mining's hopes for rare earths - Business InsiderThe surging stock price of Elon Musk's electric-car startup bodes well for Hochschild Mining's rare-earth business. here i am, missing another chance to become a millionaire because i lack investment capital, bitcoin ibuypowerholo tesla interesting... would like to see a correlation there but those two sectors have been moving opposites, tech vs natural metals. maybe if you consider tesla just a battery company i could see this
Fonte: BusinessInsider - 🏆 729. / 51 Consulte Mais informação »