Goldman Sachs Suggests Selling Calls on Cablevision

Goldman Sachs is out with a research report this morning, where it suggests that traders sell calls on Cablevision Systems Corporation LEAP to enhance yield. Goldman Sachs Telecom and Cable Services analyst Jason Armstrong CVC and other Cable/Satellite stocks have taken their cue from capital allocation moves. In the bull case, absent near term M&A, investors have growing optimism that a large capital allocation announcement is coming. The options market is expecting significant news on earnings (August 5), with the implied move now +/-6.3%, vs. the median 8 quarter move of +/-3.3%. Goldman Sachs suggests Selling the August $27.00 call for $0.65. Cablevision Systems Corporation, through its subsidiary, CSC Holdings, LLC, is a cable operator in the United States. Cablevision also operates cable programming networks, entertainment businesses, telecommunications companies and a newspaper publishing business.