Goldman Sachs Analyst Suggests Investing In Tech Companies
Vivek, is analyzing a wide range of variables and datasets to determine which stocks will perform the best the first trading day after quarterly reports are released.
In conducting this analysis, Vivek relies both on external data from the stock market and internal data from Goldman Sachs. More specifically, he is looking at shares that have low short interest and looking at options-market positioning.
He suggests that investors put their money in options. Prices for options are low relative to price points over the last thirty years.
"With option prices broadly low (implied volatility on the average S&P 500 stock has declined to its 13th percentile relative to the past 30 years) we recommend buying options to position ahead of these earnings," Vivek wrote.
Through his analysis, Vivek was able to compile a top ten list of stocks to invest in. He suggests investing in Amazon, which has an implied move of 3.7%. Additionally, he suggests investing in PayPal, which has an implied move of 5.9%.