Goldman Buying Hedges on Merck (MRK)

Goldman Sachs is out with a research report this morning, where it suggesting buying puts on Merck & Co. Inc.

as a hedge to long shares through the company's arbitration process. The analyst believes that the stock is already pricing in a favorable outcome for MRK, noting that options prices are at a three-year low, which makes them a good way to hedge the overdone shares. The analyst suggested buying the November $35 put for $0.59 on new positions and rolling the previously long Oct $36 put at this time, which was previously suggested as a long hedge.