Goldman Sachs Suggests Buying Straddles on Ford and GM (F, GM)

Goldman Sachs is out with a research report this morning, where it's analysts voice the opinion that, over the past 11 years, the two weeks during the auto show has been the time to own straddles on auto stocks. Their research shows that, over that period, Ford Motor Co. F OTC strangles have returned an average of 12% during the period, as investors underestimate the volatility in this name around this time of year. The analysts suggest buying the February $17.00 straddles in Ford for $1.65 and the February $38.00 straddle in General Motors GM for $3.55.