Goldman Sachs Suggests Buying Puts on H&R Block (HRB)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy puts on H&R Block HRB ahead of this year's tax season due to put-back risk. The Goldman Sachs analyst sees the potential for tax season updates over the next two months to show pressure on pricing and market share that could cause volatility in HRB shares. He noted that the upcoming month is important, as it is typical for the biggest 2 weeks of tax season to account for the disproportionate balance of HRB's revenue for the entire year. Goldman suggests buying the April $14.00 put for $0.80. H&R Block, Inc. has subsidiaries that provide tax, banking, and business and consulting services. The company's Tax Services segment provides income tax return preparation, electronic filing and other services and products related to income tax return preparation to the general public primarily in the United States, and also in Canada and Australia.