As the earnings season approaches, higher political uncertainty could result in financial reports driving higher-than-normal volatility as management teams manage the cross currents at the macro level; yet options investors are pricing in unusually low earnings moves for many stocks.
* Goldman analysts says LVLT earnings may be moreimportant for Centurylink Inc. shares than normal because of proposed merger expected to close in 3Q.
* Buy Monster Beverage as option prices are too low and may rise as earnings date approaches
*Buy Finisar as options underprice high fundamental uncertainty.
*Buy Royal Caribbean Cruises as options underprice typical earnings move despite higher risks.
* Buy United Rentals as options miss typical earnings volatility and shares may be more volatile later.
Goldman says add to these previously recommended trades:
* Buy D Apr-17 $72.5/$65 Put Spread
* Buy Dish TV India Limited $62.5
* Buy Duke Energy Corp $75/$67.5
* Buy E*TRADE Financial Corp $35
* Buy Expedia Inc $129
* Buy Fluor Corporation $55
* Buy IBM $175
* Buy Nordstrom, Inc. $40.15
* Buy CarMax, Inc. $57.5
* Buy Microsoft $65
* Buy Mylan Br $42.5
* Buy Netflix $145
* Buy Nvidia $105
* Buy Vulcan Materials Company $115
* Buy Weyerhaeuser $34
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