Goldman Sachs Suggests Buying Options on Industrials (GE, ETN, IR)

Goldman Sachs is out with a research report this morning, where it suggests that traders buy options on industrials ahead of next week's Electrical Products Group (

) conference in Florida on May 16-18. They also noted that the US Industrial Production data is expected May 17. Goldman analysts find that the stock moves for industrials companies tend to be larger than normal during the EPG conference and that options prices on several industrials screen as attractive relative to history and relative to historical EPG conference moves. The analysts recommend buying calls on General Electric Company

and Eaton Corporation

, where they see the potential for bullish commentary. They also recommend buying puts on Ingersoll-Rand plc

where they see the potential for underperformance. Specifically, Goldman suggests buying the June $20.00 calls for $0.59 on GE, the June $55 calls for $0.60 on ETN, and the June $50.00 puts for $1.50 on IR.