Market Overview

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

Posted-In: Goldman SachsAnalyst Color Options Markets Trading Ideas

 

Most Popular

Related Articles (INTC)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free