Goldman Sachs is eyeing a specific trading strategy that could win in the final weeks of 2024. The contract sells the option back to the market one day before the company’s analyst day. Goldman Sachs said the strategy has returned an average of 18% on premiums over the past 20 years. John Marshall, head of derivatives research at Goldman Sachs, concluded: “We believe the information content of the analyst day is very important because company management takes the opportunity to review recent results, set strategic priorities, provide/update forward guidance, reveal long-term goals, etc. “Despite the importance of analyst days, options markets tend to underestimate volatility around analyst days. Goldman Sachs highlights 16 potential opportunities in stocks ranging from Robinhood to GE Vernova to Match Group during its December analyst day. Robinhood will host its first investor day on Dec. 4. Champions of the currency. Goldman Sachs will be listening in particular Comments on how Robinhood will participate in the expanding cryptocurrency ecosystem amid loosening government regulations HOOD Mountain Robinhood stock so far this year Marshall noted that Robinhood stock’s two-week implied volatility is 69, which is at 69% compared to last year. 78 percentage points. Ahead of Robinhood’s investor day, where volatility is expected to rise, Goldman Sachs recommends buying the stock’s Dec. 6 call options, which have a $36.50 strike price. The trading platform’s shares are up 195% in 2024. The power equipment company is likely to reveal details of its new segment targets for 2028 and how the company will benefit from the emerging energy transition. Analyst Joe Ritchie remains optimistic about GE Vernova’s core business of power and electrification. GEV YTD is strong enough to offset any headwinds related to expanding its offshore wind business. Goldman Sachs recommends buying GE Vernova calls with a strike price of $340. The 1-month implied volatility is 49, about 7 points lower than the 1-month realized volatility of 56. Goldman Sachs is also watching Match Group’s call, which is expected to be held on December 11. Goldman Sachs’ first investor day will provide insight into how Match plans to address user acquisition and future growth issues, which were notable headwinds in the company’s latest earnings report in 2024. Recommend buying December 13 calls on Match with a $33 strike price. Match stock has a one-month implied volatility of 38, which puts it in the 78th percentile compared to last year.
