Goldman Sachs Suggests Selling Covered Calls on Limited Brands (LTD)

Goldman Sachs is out with a research note this morning, where it suggests that traders sell covered calls on Limited Brands LTD. Goldman Sachs Retail Specialty Apparel analyst, Michelle Tan, rates LTD as a Sell, noting that she sees limited upside in near-term. The analyst feels that shares may have run too far too fast; LTD has been one of the best performing stocks in retail sector over past 1 year, up 70% vs. S&P Retail sector up 32% and S&P 500 up 18%. The analysts recommend selling the May $31 call against a long position in the stock for $1.20. Limited Brands, Inc. is a specialty retailer of women's intimate and other apparel, beauty and personal care products and accessories under various trade names. The company sells its merchandise primarily through its retail stores in the United States and Canada and through its Websites and catalogues.