Goldman Sachs Suggests Buying Put Spreads on Micron Technology

Goldman Sachs is out with a research report this morning, where is suggests that traders buy 1x2 put spreads on Micron Technology

. Goldman Sachs semiconductor analyst, James Schneider, sees 11% downside to Sell rating MU shares over the next 6-mths. He expects DRAM pricing to move lower over the next 6-9 months: (1) GS expects PC shipments to grow just 4% in 2011 vs expectations of 10%-plus growth, and (2) headwinds to DRAM demand from tablets. Goldman recommends buying the October $9/8 1x2 put spread for a net credit of $0.10. Micron Technology, Inc. is a manufacturer and marketer of semiconductor devices, principally dynamic random access memory (

), Nandi Flash memory (NAND Flash and NOR Flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, embedded and mobile products.