Source: Business Insider
The stock market’s relatively low volatility has cheapened options trades that would profit from the big price swings that typically occur during earnings season. A team of derivatives strategists at Goldman Sachs identify 20 stocks where earnings-related options strategies are cheap relative to history. Click here for more BI Prime stories . Despite its ascent to numerous record highs over the past few months, the stock market has been rather quiet beneath the surface. This stretch of relatively low volatility has lulled investors into thinking that the next couple of weeks will also be calm, according to options strategists at Goldman Sachs. In quantifying this lull, the team led by Vishal Vivek found that three-month implied volatility for the average S&P 500 stock is at 22, near a two-year low and in its 20th percentile relative to the past 15-plus years. In other words, traders are expecting well-below-average price swings. This is a double-edged sword of complacency and opportunity, in their view.