It's time to make a play for Apple, advises Goldman Sachs' options research team. And they suggest a very specific way to do it.
With both October earnings and the holiday shopping season coming up, Goldman's Katherine Fogertey and John Marshall suggest buying the January 115-strike call on Apple for about $5.70. Since a call represents the right to buy a stock for a given price within a given time frame, this represents the right to buy Apple shares for $115 between now and mid-January.
Because Apple shares have to rise above $115 by more than the $5.70 being laid out, this represents a bet that the stock will rise above $120.70 in four months, or more than 9 percent above Wednesday's closing price.
For Goldman, this appears a distinct possibility. Simona Jankowski, Goldman's (new) Apple analyst, sees Apple shares rising to $163, on the back of stronger-than-expected iPhone and iPad sales that will spur higher-than-expected revenue and earnings.
"Our survey results indicate that the iPad is the top consumer electronics product for the upcoming holiday season, with 16 percent of respondents planning to buy one," Goldman wrote in the note released Wednesday.