Goldman Sachs Suggests Searching for Yield Through Options

Goldman Sachs is out with a research note this morning, where it suggests that traders look to gain yield in this market by turning to options strategies. Goldman's analysts see four potential ways to yield from options: 1. Turn stocks in to bonds by overlaying put-spread collars to extract bond-like yield from stocks while also remaining hedged. Traders can use this strategy on Schlumberger SLB, Oracle ORCL, Cisco Systems CSCO, and Home Depot HD. 2. Find duel-yielding stocks, where you can receive a favorable dividend payment and then buy-write covered calls. Traders can use this strategy on AT&T T, Bristol-Myers Squibb BMY, 3M MMM, and Norfolk Southern NSC. 3. Sell puts on stocks with high and sustainable returns. Traders can use this strategy on Halliburton HAL, MasterCard MA, Monsanto MON, and QUALCOMM QCOM. 4. Overwrite consumer discretionary names. High implied volatility and recently resilient equity prices make consumer discretionary the most attractive sector for overwriting. Traders can use this strategy on MGM Resorts International MGM, Abercrombie & Fitch Co. ANF, Chipotle Mexican Grill CMG, and Disney DIS.