Goldman Buying Calls on Cigna Ahead of Key Catalysts (CI)

Goldman Sachs is out with a research report this morning, where it suggests buying calls on Cigna Corp. CI ahead of some key catalysts. The analyst is bullish on managed care names in general; Cigna itself is Conviction Buy rated. The analysts cited several catalysts: 1. HHS ruling on final medical loss ratio rules 2. The mid-term election 3. Earnings 4. First-time 2011 guidance The analyst believe being on the bull side of the fence is the way to go; he suggested buying the January $39.00 calls to gain upside exposure to the name for a net debit of $1.15. Goldman noted, “If shares move to our analyst's price target before January expiration (much faster than our analyst estimates), we estimate the calls could be worth 4x their current value.”