5 Stocks to Buy and 5 to Sell for 2026

A Benzinga scan of roughly 4,000 stocks flagged a short list of names with unusually rich options premiums and another with options at year‑lows, signaling trade setups: the “Naughty” group—led by Oracle (implied volatility surged from ~24% to 64% ahead of earnings in two days), plus Lululemon, Paychex, Ciena and FactSet—shows inflated time premium that favors selling rather than buying options; the “Nice” group—including Uber (IV down from near 80% in April to ~30% with no earnings for 58 days), RBRK, Ttempus AI, Ross Stores and Ventas—has options near their annual lows, making long‑premium strategies more attractive. The note underscores that volatility levels, not just directional conviction, should drive option selection, and warns that Powell’s post‑cut tone could determine whether the seasonal Santa Claus rally materializes, affecting catalyst timing and risk‑reward.

Analysis

A Benzinga scan of roughly 4,000 stocks split the universe into a “Naughty” cohort with unusually rich option premiums and a “Nice” cohort trading near year-low implied volatility. Oracle is the clearest example: implied volatility rose from about 24% earlier in the year to ~64% today ahead of earnings in two days, and Lululemon, Paychex, Ciena and FactSet similarly show inflated time premium that makes outright long calls or puts expensive relative to likely moves.

By contrast, Uber’s implied volatility has fallen from near 80% in April to roughly 30% with no earnings for the next 58 days, and RBRK, Ttempus AI (TEM), Ross (ROST) and Ventas (VTR) are at or near annual IV lows. Those low-premium names provide cleaner, lower-cost entry points for long-premium strategies if a directional or catalyst-driven thesis exists.

Macro risk is a proximate driver: Powell’s post-cut tone could determine whether the seasonal Santa Claus rally materializes and will reprice volatility across sectors. Given the article’s mixed sentiment and modest market-impact score (0.25), the practical implication is to let volatility — not just directional conviction — dictate option role: sell premium in high-IV names and buy selectively in low-IV names while tightly controlling earnings and Fed-event exposure.

Key Decisions for Investors

• Avoid buying naked long options on ORCL, LULU, PAYX, CIEN and FDS into near-term catalysts; favor premium-selling strategies such as defined-risk credit spreads or iron condors instead
• Consider selective long-premium positions (calls or call spreads) on UBER, RBRK, TEM, ROST and VTR where IV is at year-lows, aligning expirations to identifiable catalysts (UBER has no earnings for 58 days)
• Treat Oracle’s earnings in two days and Powell’s post-cut commentary as primary IV/directional risk triggers and be prepared to hedge or reduce exposure ahead of those events
• Size positions conservatively and prioritize defined-risk option structures to limit losses from sudden IV spikes; use position-sizing and explicit hedges rather than naked exposure