Goldman Sachs Suggests Buying Puts on Leap Wireless

Goldman Sachs is out with a research report this morning, where it suggests that traders buy puts on Leap Wireless LEAP. Goldman Sachs Telecom and Cable Services analyst Jason Armstrong is more cautious on LEAP's net subscriber adds into 2Q results as he believes negative seasonality, weak macro data (high gas prices/food cost inflation), and recently introduced promotions in June could be a leading indicator of lighter than expected 2Q net adds. This is a highly watched metric for LEAP, and he believes a miss on this metric could result in weakness in shares. Goldman noted that LEAP shares have traded down 7 of the past 8 earnings. Goldman Sachs suggests buying the August $15.00 put for $0.84. Leap Wireless International, Inc. is a wireless communications carrier that offers digital wireless services in the United States under the Cricket brand. Leap's Cricket service offerings provide customers with unlimited wireless services for a flat rate without requiring a fixed-term contract or a credit check.