According to Goldman Sachs, earnings season offers many opportunities to capitalize on negative market sentiment. In a note to clients on Tuesday, the company’s derivatives research team said upcoming earnings reports will be a volatility report for individual stocks, which is good news for investors. options trading. “Although equities have dipped lower in recent months due to pricing pressures catalyzed by higher interest rates, we expect earnings cadence/sliding to become increasingly relevant this quarter as the pace increases. Options expect intraday earnings to grow an average of +/- 6.1% this quarter, the third-highest in 12 years (observed at this point before earnings), “recorded Goldman’s uncle said. Investors are concerned about a recession and a potentially deeper bear market that could provide the opportunity for bigger moves with surprises on the upside. “Fear of rising prices for earnings causes stockpiles to recover on earnings day,” the note said. The simplest way for investors to bet against through derivatives is to use call options. The calls have a set strike price and the investor can make money if the underlying stock rises above the actual price before expiration. The risk to the investor is limited to the premium paid to purchase a call option contract. Here are some stocks where Goldman analysts expect earnings to skyrocket this upcoming reporting season and in the upcoming quarters, which could lead to a strong lead. Source: Goldman Sachs The company on the list that Goldman expects to have the highest earnings beat this quarter is bread machine maker Mattel. Goldman analysts estimate earnings per share to be 20% above consensus, according to the note. Shares of Mattel have outperformed in 2022, up more than 5% year-over-year. Another consumer-focused name on the list is Monster Beverage. One possible good omen for Monster is PepsiCo’s performance, which reported a top and bottom beat Tuesday morning. In that report, PepsiCo said its organic beverage sales in North America grew 9%, while sales volume fell 1%, indicating that demand is growing relatively well despite ingrained inflation. into the consumer’s wallet. There are several financial firms on the list, including Interactive Brokers. Stocks are down more than 30% year-to-date so far this year, as the bear market seems to have dampened the enthusiasm of smaller traders to help brokers. Still, Goldman predicts Interactive Brokers will beat earnings estimates by 8% in its upcoming report. – Michael Bloom of CNBC contributed to this report.