Health Stocks Are Among Goldman’s Top Election Volatility Plays
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U.S. equity investors are facing a turbulent four months as the presidential election heats up, and Goldman Sachs analysts scanned their coverage universe and found 38 stocks that investors can use to take advantage of that volatility with options.
Large-cap health insurers and biotechs are at the top the list of stocks analysts led by Vishal Vivek see as swinging the most wildly, and they recommended buying at-the money-straddles. The strategy involves buying a put option and a call option with the same strike price and maturity date, which looks to profit from a jump in volatility.