Goldman Sachs Singles Out Earnings Strategy Profits For Over 2 Decades

Chris Hondros/Getty Images Options traders are underestimating the volatility that could arise as companies report second-quarter earnings, according to a team of strategists at Goldman Sachs. They're recommending a strategy that's worked consistently every year since 1996: buying out-of-the-money call options five days before earnings announcements and selling one day after.