Goldman Sachs Suggests Buying Strangles on Research In Motion (RIMM)

Goldman Sachs is out with a research note this morning, where it suggests that traders look to buy strangles on Research In Motion Limited RIMM. Despite shares trading down 11% from 24-March earnings, analysts at GS still view RIMM as a controversial stock. While Goldman Sachs Comm Tech analyst, Simona Jankowski, is Sell rated, half of the 58 analyst who cover the stock are Buy rated. With management guiding lower for the first time in history last quarter, the analysts believe that bulls will look at this upcoming 2-May Analyst Day as a critical signpost for the stock. Goldman suggests buying the May $55/60 strangle for $3.93. Research In Motion Limited is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information, including e-mail, phone, short message service (SMS), Internet and intranet-based applications.