Goldman Sachs Suggest Selling Covered Calls on Hewlett-Packard Company (HPQ)

Goldman Sachs is out with a research note this morning, where it suggests that traders continue to sell covered calls on Hewlett-Packard Company HPQ to enhance near-term yield. Goldman Sachs analyst, Bill Shope, sees risk to HPQ's 2H2011 EPS and 13% downside to shares. Specifically, the analyst notes that HP's revenue miss for 1QFY11 and its light revenue guidance for both 2QFY11 and FY2011 highlight some of the key cyclical headwinds the company is facing in its key business segments. The analysts suggest selling the May $45.00 covered call for $1.51. Hewlett-Packard Company is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.