Goldman Sachs Recommends Straddle For JPMorgan (HOG, HOT, JPM)

The earnings season volatility has increased. In its report on options, Goldman Sachs has said that Harley Davidson HOG, Starwood Hotels & Resorts Worldwide HOT and JPMorgan JPM are good trading stocks. The research report has suggested a strangle play on the Harley Davidson August option as the company is likely to miss the earnings forecasts. Similarly, the report has recommended selling Starwood August puts. For JPMorgan, a July $37 straddle has been suggested, as the implied volatility is likely to remain low due to regulatory reforms and systematic risks.