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.
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