GS: Low volatility, creates historical chance for buying options

There is much talk recently about the record low volatility. And while this is a serious market distortion that is unlikely to last for too long, it creates historical opportunities for investors, according to Goldman Sachs. More specifically, in the direction of buying options.
In fact, the low volatility indicates the minimum premiums set in the call and put options.
The VIX Volatility Index, based on these premiums, for the next month, has reached a level of 8% recently or unprecedented since 1988.
"The record low volatility is predetermined by both low volatility in individual companies and by the lack of correlation between stocks," analysts from the US investment bank say.
This, however, brings with it exceptional opportunities for investors to invest in options.
There are many companies that are expected to announce their results in the coming weeks and from which investors can benefit, at low premiums and in an environment of anticipated more severe change in their prices.
From GS give an example with companies such as Johnson & Johnson, Wells Fargo & Co. and Honeywell International, which are listed in the 10 most attractive oportunities for trading options.
The US financial institution also recommends investors to stick to the straddle strategy. This is an option strategy that involves a more serious move in the asset's value rather than the direction. It involves the simultaneous purchase of put and call options with the same strike.