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
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