Goldman Sachs Suggests Selling Covered Strangles on Marriott International (MAR)

Goldman Sachs is out with a research note this morning, where it suggests that traders sell covered strangles on Marriott International MAR ahead of earnings. The GS analysts noted that MAR's 3-month implied volatility is above average relative to their average stock in the S&P 500. The analysts rate MAR as a Buy in the context of their Attractive coverage view. The analysts further expect earnings this quarter to show stable fundamentals, but given that they are still early in the year and January data has generally been within expectations they do not expect any significant increases in 2011 RevPAR guidance. The analysts recommend selling the April $38/43 covered strangle for $1.90. Marriott International, Inc. is a worldwide operator and franchisor of hotels and related lodging facilities. The company's operations are grouped into the five business segments: North American Full-Service Lodging, North American Limited-Service Lodging, International Lodging, Luxury Lodging and Timeshare.