Goldman Predicts Significant Gains for These Stocks During Analyst Days

These stocks could see strong gains around their analyst days, Goldman says

Unlocking Profits: The Power of Corporate Events for Options Traders

Welcome to Extreme Investor Network! Each June, the financial landscape heats up as companies unveil their plans for the second half of the year. This month serves as a crucial window for both executives and savvy investors, as corporate events often lead to significant price movements in stocks. Here at Extreme Investor Network, we’re diving into the strategies you can employ to leverage these events, bringing you insights that can help elevate your trading game.

Corporate Events: A Golden Opportunity

June is bustling with corporate investor days and analyst conferences. These events are not merely formalities; they are platforms where executives aim to impress both investors and Wall Street analysts with their vision and performance forecasts. According to research from Goldman Sachs, the buzz created around these events can be capitalized upon, particularly for options traders.

The Bullish Call Option Strategy

John Marshall, a part of Goldman’s derivatives research team, noted a compelling trend: Buying call options in the lead-up to these corporate events has proven to be a winning strategy over the past 25 years. In fact, the research indicates that purchasing call options five days before an analyst day and selling them one day after could yield an impressive average return of +18% on premium. Remarkably, this strategy has stayed profitable each year—aside from 2008 and 2022, where macroeconomic shifts overshadowed shorter-term market movements.

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Understanding Call Options

For those unfamiliar with trading options, call options are contracts that grant the holder the right—but not the obligation—to purchase stock at a predetermined price within a specified timeframe. Essentially, purchasing a call option means you’re betting that the stock will exceed this strike price before the option expires. If the stock doesn’t perform as expected, the option will expire worthless, and you’ll only lose the premium paid.

Potential Opportunities for June 2023

Goldman Sachs has spotlighted several companies with investor events this month that could be primed for call option strategies:

  1. John Deere (DE): Scheduled for its Brazil investor day on June 6, John Deere boasts over a 20% jump in stock performance year-to-date, hinting at strong momentum ahead of the event.

  2. GE Aerospace: With an investor day on June 17, GE Aerospace has skyrocketed more than 50% this year. This event marks its first analyst day following its split from General Electric, creating ample investor interest and opportunity.

  3. Humana (HUM): Although slightly off its performance pace with a 10% decline year-to-date, Humana’s investor conference on June 16 presents a buying opportunity for those looking to capitalize on a potential rebound.

  4. Waste Management: Set to hold its investor day on June 24 at the New York Stock Exchange, Waste Management is trading near all-time highs, making it another interesting candidate for options strategies.
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Maximizing Your Trading Strategy

Leveraging insights from corporate investor days can be a smart way to navigate the stock market. As a member of the Extreme Investor Network, you gain access to timely information, expert analysis, and community insights that can further empower your trading decisions.

Tips for Success:

  • Research Upcoming Events: Always keep an eye on the financial calendars to track companies with looming investor days.

  • Conduct Technical Analysis: Before jumping into call options, analyze the stock’s performance and trend patterns.

  • Stay Informed: Economic indicators and broader market movements can impact stock prices; be aware of the macroeconomic landscape.

  • Engage with the Community: Share insights and strategies with fellow Extreme Investor Network members. Collaboration can often lead to discovering more opportunities.
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At Extreme Investor Network, we believe that informed trading leads to smarter investing. June is an exciting month to capitalize on corporate events, and by utilizing the strategies discussed above, you can set yourself up for continued success in your investment journey.

Stay tuned for more valuable insights and trends, and happy trading!