Goldman Sachs Suggests Selling Covered Strangles on MGM Resorts

Goldman Sachs is out with a research report this morning, where it suggests that traders sell covered strangles on MGM Resorts

to enhance yield. Goldman Sachs Gaming analyst Steven Kent recommends that investors buy the stock as the Las Vegas turnaround appears underway. During MGM's August 8 earnings call, the analyst expects investors to focus on (1) 2011 convention booking trends in Las Vegas, (2) business trends at CityCenter, and (3) an update on MGM Macau. Goldman Sachs suggests buying shares and selling the September $14/17 strangle for 8.8% of the underlying. MGM Resorts International is a holding company engaged in gaming, hospitality and entertainment. The company conducts its business through its wholly owned subsidiaries.