Goldman Sachs Suggests Buying Put Spreads on Xilinx

Goldman Sachs is out with a research note this morning, where it suggests that traders buy put spreads on Xilinx (NASDAQ: XLNX) as it sees risks to Q4 guidance.

GS Semiconductor analyst James Schneider sees risks to the semi sector broadly into year's end, as the consensus view of the sector is positive and investors are looking to own beta even though fundamentals are currently very weak.

XLNX specifically, the analyst sees 12% downside to shares, and sees risk to management's guidance for sales to be down 3% to 8% qoq this quarter, above his estimate of down 10% qoq.

The analysts suggest buying the March 2012 $30/25 put spread for $1.39

Xilinx, Inc. designs, develops and markets programmable platforms.