A simple options strategy has been a big winner this earnings season, Goldman says

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Goldman's derivatives research team said in a note to clients on Wednesday that the implied volatility for stocks around earnings has been falling.

An earnings season that has been better-than-feared and a relatively calm stock market has led to big gains for a simple options strategy, according to Goldman Sachs. Vishal Vivek of Goldman's derivatives research team said in a note to clients on Wednesday that the implied volatility for stocks around earnings has been falling in recent weeks, making a simple strategy of buying call options a winner. "Buying calls ahead of earnings for the average U.S.

mountain Shares of Post have struggled to find traction in 2023. Another way for investors to take advantage of low implied volatility is to go long on straddles, Goldman said. A straddle is a trade where an investor buys a call option and a put option on the underlying stock, meaning that the trade can make money if the stock rises or falls.

 

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