Savvy investors are continually seeking tactical advantages in the market, often looking to capitalize on predictable corporate events. Recent analysis from Goldman Sachs sheds light on a particular strategy involving options trading around these significant dates. Their research suggests that purchasing call options in anticipation of corporate investor days has historically yielded consistent positive returns, making it a potentially lucrative approach for informed participants.
Goldman Sachs’s Proven Strategy
According to findings from Goldman Sachs’s derivatives team, led by John Marshall, a specific options strategy has demonstrated remarkable profitability. The approach involves acquiring call options five days prior to a company’s investor day event and liquidating them just one day after. This method has generated an impressive average return of +18% on the premium paid. The consistency of this strategy is particularly striking, having proven effective in 23 out of the past 25 years, with 2008 and 2022 being the only exceptions.
The firm emphasizes that periods rich in corporate presentations, such as June, offer ample opportunities for this strategy. The ideal candidates are companies with active options markets and strong institutional visibility, ensuring liquidity and interest around their events.
Highlighted Opportunities
Goldman Sachs has identified several companies whose upcoming investor day events present attractive prospects for this call option strategy:
Deere (DE)
Deere is poised to host its investor day in Brazil. The agricultural machinery giant has already seen its stock climb over 20% in 2025, buoyed by robust performance across the machinery sector. The event is expected to provide further insights into its operational outlook and growth initiatives.
GE Aerospace (GE)
With its stock soaring by over 50% year-to-date, GE Aerospace is another top candidate. The company is set to hold its inaugural analyst day as an independent entity, following its recent spin-off from General Electric. This event could offer critical information on its standalone strategy and financial projections, potentially driving further market activity.
Humana (HUM)
Scheduled for June 16, Humana’s investor event is one to watch within the healthcare sector. Despite a 10% decline this year, the company remains a significant player, and its investor day could unveil strategies to address recent market challenges or highlight future growth avenues.
Waste Management (WM)
Waste Management (WM) will conduct its investor day on June 24 at the New York Stock Exchange. The company’s shares are currently trading near all-time highs, signaling strong market confidence in its business model and future prospects. This event offers an opportunity for investors to gain deeper insights into its operational efficiency and expansion plans.
Sophia Patel brings deep expertise in portfolio management and risk assessment. With a Master’s in Finance, she writes practical guides and in-depth analyses to help investors build and protect their wealth.