Goldman Sachs Eyes Earnings Volatility: Meta, Robinhood as Potential Outperformers
Goldman Sachs strategists anticipate post-earnings volatility will exceed options market pricing, with particular focus on Meta, UnitedHealth Group, and Robinhood as likely upside surprises. Utilities, healthcare, and industrials sectors show the highest potential for price swings.
Current S&P 500 options imply just 4.5% moves post-earnings—near 20-year lows—despite recent quarters delivering 5.4% average swings. "The market is underpricing volatility," Goldman analysts note, highlighting discrepancies between derivatives pricing and fundamental drivers.
Southwest Airlines and Texas Instruments appear vulnerable to downside surprises. The report suggests using strangles or straddles to capitalize on mispriced volatility, particularly in crypto-correlated equities like MicroStrategy.
