Goldman Sachs Suggests Buying Straddles on Google

Goldman Sachs is out with a research note this morning, where it suggests that traders buy straddles on Google

ahead of earnings. GOOG shares have moved on average 7.9% over the past eight quarters on earnings. The GS analysts recommend buying straddles as the total cost is less than this average move, yet also captures a month of trading days where there is the potential for macro catalysts to move this large-cap stock as well. Historically, the analysts have found unusually high profitability patterns from buying GOOG straddles ahead of earnings. The analysts suggest buying the April 2012 $635 straddle for $44.60. Google Inc. is a global technology company focused on improving the ways people connect with information.