Goldman Sachs Suggests Selling Covered Calls on HPQ

Goldman Sachs is out with a research report this morning, where it's analyst, Bill Shope, sees risk to Hewlett Packard's HPQ 2H2011 EPS and 13% downside to shares. The analysts suggests selling covered calls on long positions as an exit strategy or as a means to enhance returns, as the stock is likely to languish in ‘‘wait and see'' mode during the leadership transition. Mr. Shope recommends selling the May $45.00 call for $2.15.