Goldman Sachs Suggests Buying Puts on Dell Inc.

Goldman Sachs is out with a research note this morning, where it suggests that traders buy puts on Dell Inc. DELL ahead of its analyst day. Goldman Sachs Hardware Analyst Bill Shope rates DELL shares Sell and sees 20% downside to his $13 12-month price target. Ahead of DELL's June 28 Analyst Day, the analysts studied historical trading patterns of stock and options. There are several takeaways: • DELL stock tends to be volatile and trade down on analyst days. • Historically, buying puts ahead of DELL's Analyst Days has been highly profitable. • The options market is already showing signs of concern, however, implied volatility remains muted. Goldman suggests buying the July $16 put for $0.31. Dell Inc. is a technology company that offers a range of technology product categories, including mobility products, desktop personal computers (PCs), software and peripherals, servers and networking products, storage and services.