Goldman Sachs Suggests Buying Put Spread on Intel

Goldman Sachs is out with a research note this morning, where it suggests that traders buy put spreads on Intel INTC ahead of AMAT's earnings release. Goldman Sachs analyst James Covello believes that AMAT's earnings are going to disappoint. INTC is a significant customer for AMAT, representing approximately 20% of their semi equipment bookings last quarter. The analyst believes that AMAT's quarter is likely to be inline, but expects management to guide 3QCY11 sales down by 10%-15% qoq driven by weakness in SPE, crystalline solar, and display. The analysts suggest buying the September $20/18 put spread for $0.59. 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.