Goldman Sachs Suggests Buying Put Spreads on Intel
Goldman Sachs is out with a research note this morning, where it suggests that traders buy 1x2 put spreads on Intel (NASDAQ: INTC) ahead of earnings.
GS Semi analyst James Covello recommends investors avoid the sector, noting the continued underperformance of semiconductor companies that have preannounced as a signal that the bad news is not in stocks.
To date, 21 semi companies have negatively preannounced 3Q2011 results, with median underperformance of 4.2% vs. the S&P since lowering numbers.
The analysts suggest buying the October $21/18 1x2 put spread for $0.28.
Intel Corporation is a semiconductor chip maker company. The company develops advanced integrated digital technology products, primarily integrated circuits, for industries, such as computing and communications
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.