Wall Street will watch the Federal Reserve and Chair Jerome Powell closely on Wednesday afternoon, creating the environment for a knee-jerk market move. According to Goldman Sachs, this option can create opportunities for investors. The investment firm’s derivatives research team, led by Vishal Vivek, said in a note to clients on Wednesday that some banks, including stocks, are becoming a major source of volatility on the day of the Fed’s decision. “Among stocks, options in CMA, Zion and STT screen are most attractive relative to historical one-day moves in FOMC days,” the note said. Take a look at some of the bank stocks on Goldman’s list and their average move in recent years in Fed decision days, led by Comerica. Goldman said the options market was pricing in these stocks at below-average volatility, creating an opportunity for investors. Bank stocks can be particularly sensitive to Fed decisions because their business models are closely tied to interest rates and the state of the economy. Conventional wisdom holds that rising interest rates are good news for bank stocks, as it can translate into higher net interest margins for financial companies. But bank stocks have been hit hard in 2022, even as rates have risen. The Financial Select Sector SPDR Fund is down 16% year to date, outperforming the S&P 500 but certainly not proving to be a safe haven for investors. However, for investors exercising straddle options, the direction of the stock’s move may not matter. Those derivatives consist of a coupled put and call option with the same strike price and expiration date. Straddles serve as bets on high volatility, regardless of whether the stock rises or falls. The Fed is expected to raise its benchmark interest rate by 0.75 percent on Wednesday, its third straight move. Some of the top bank stocks on Goldman’s list saw notable moves after the last two rises. Comerica rose 1.81 per cent after the July hike and 2 per cent after the June hike. Zions saw gains of 1.54% and 2.51% respectively. State Street has seen even bigger moves, with a gain of 2.87% in July and 2.83% in June. — CNBC’s Michael Bloom contributed to this report.