Goldman Sachs Suggests Buying Puts on Johnson & Johnson (JNJ)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy puts on Johnson & Johnson JNJ ahead of potential guidance reductions. Goldman Sachs Pharma analyst, Jami Rubin, expects management to reduce operational EPS guidance in light of recalls, consent decree, and the Crucell acquisition. This could take place on or before the May 26th analyst day. The GS analysts suggestion buying the May $60 puts for $1.42. The analysts noted that JNJ's 1-month implied vol (13%) is the 5th lowest in their universe of 800 stocks, which screens low vs SPX and XLV implied volatility. Johnson & Johnson is a holding company. The company and its subsidiaries are engaged in the research and development, manufacture and sale of a range of products in the health care field. It has more than 250 operating companies conducting business worldwide.