Goldman Sachs Suggests Selling Puts on Oracle
September 15, 2011 9:51 AM
Goldman Sachs is out with a research note this morning, where it suggests that traders sell puts on Oracle (NYSE: COF) ahead of earnings.
Goldman Sachs Software analyst Heather Bellini rates ORCL Buy (Conviction List) and sees 17% upside to her 12-month price target of $33. The analysts see put selling, which yields 4%, as an attractive way to express their bullish view on ORCL, which has a strong maintenance stream (51% of FY12E sales) and exceptional cost control abilities in the back of a challenging macro environment.
The analysts suggest selling the December $25.00 put for $1.17.
Oracle Corporation, incorporated in 2005, is an enterprise software company. The company develops, manufactures, markets, distributes and services database and middleware software, applications software and hardware systems, consisting primarily of computer server and storage products.
