Goldman Suggests Selling Puts on Verizon (VZ)

Goldman Sachs is out with a research note this morning, where its analysts suggest traders sell puts on Verizon Communications VZ. Goldman Sachs Communications Services analyst, Jason Armstrong, recently upgraded VZ to Buy, with 17% upside to his 12-month price target. He believes Verizon can surprise in the following ways: 1. VZ is set up for a dominant year in wireless in 2011 in his view as he expects 2011 wireless service revenue growth of 10% 2. He expects mid- to high-single digit postpaid ARPU growth exiting 2011 3. He sees manageable iPhone dilution. The analysts suggest selling the March $35.00 puts for $1.28. Verizon Communications Inc. is a provider of communications services. Verizon operates in two segments: Domestic Wireless and Wireline.