Goldman Sachs has identified two volatility trade opportunities that could benefit from current market trends. These strategies are designed to take advantage of expected shifts in volatility while factoring in key macro events.

1. V2X Apr25 18/16 1×2 Put Ratio – 45c Offer

Goldman sees potential for volatility to move lower, making this trade an attractive way to capitalize on that expectation. With the S&P 500 (SPX) stabilizing and gaining gamma at lower levels, derivative ETFs are expected to supply more gamma to the market, reinforcing this trend.

From a broader perspective, shorting volatility through the April contract makes sense. The expiration comes after the April 2nd tariff deadline and includes multiple bank holidays, which can distort business day volatility, making it appear higher than it actually is. The put ratio structure is preferred as it allows for some downside exposure while keeping implied volatility somewhat supported, even if trade-related concerns ease.

2. SX5E vs SPX Dec25 Vol Spread – Buy SX5E -1.4v Below SPX

The underperformance of SPX spot levels has created an appealing entry point for the SX5E/SPX volatility spread heading into December 2025. This setup is attractive from both an implied vs. realized perspective and due to potential event risks.

One key consideration is the possibility of a French election in the second half of the year, which some investors see as a significant volatility driver. This trade can be structured as either a vol swap or var swap, providing flexibility while positioning for potential market shifts.

Key Insights

• The V2X Apr25 18/16 1×2 Put Ratio trade offers a way to take advantage of falling volatility while navigating market distortions.
• The SX5E vs SPX Dec25 Vol Spread presents an opportunity to benefit from relative volatility trends and potential political risk events.
• Both trades reflect a strategic approach to volatility trading, balancing short-term market dynamics with longer-term macro factors.

Goldman Sachs’ insights highlight the importance of tactical positioning in volatility markets, offering traders a structured way to capitalize on shifting conditions.