Goldman Sachs Suggests Buying Strangles on Apple Inc.

Goldman Sachs is out with a research report this morning, where it suggests that traders buy strangles on Apple Inc. AAPL ahead of its developer's conference on June 6th. Goldman Sachs Hardware analyst, Bill Shope, sees sizeable upside potential (41%) to his 12-month price target of $470, and expects June 6 to focus on a very important new product launch for AAPL focused on a new market which could drive a re-rating of AAPL's multiple. The analsyts do not see options pricing in a strong move around this event. Goldman Sachs suggests buying the June $335 strangle for $15.95. Apple Inc. designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications.