Goldman Sachs Suggests Selling Puts on Abercrombie & Fitch

Goldman Sachs is out with a research note this morning, where it suggests that traders sell put on Abercrombie & Fitch ANF as puts as “expensive.” Goldman's analysts believe the options market is pricing in much stronger risks to ANF over the next six months than their analyst expects given more recessionary resistant business model in teen retail and the potential for market share gains / international expansion. Goldman Sachs specialty retail analyst Michelle Tan designates ANF CL-Buy and sees 39% upside to shares over the next 6-mths. The analysts suggest selling the January 2012 $57.50 put for $5.30. Abercrombie & Fitch Co., through its subsidiaries, a specialty retailer that operates stores and direct-to-consumer operations selling casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products, and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brands.