(Bloomberg) -- AT&T Inc. and Verizon Communications
Inc. options should be sold because the stock-price volatility, a
key factor in pricing the contracts, is poised to decline at the
largest U.S. telephone companies, Goldman, Sachs & Co. said.
The New York-based brokerage recommended creating October
AT&T and Verizon calls and puts and then selling them to other
investors. Call options give investors the right, without the
obligation, to buy shares of a company at a specified price by a
given date. Put options convey the right to sell shares. The AT&T
options should have so-called strike prices of $40, while the
Verizon strikes should be $40 and $45, Goldman said.
Read more at Bloomberg Stocks News
Inc. options should be sold because the stock-price volatility, a
key factor in pricing the contracts, is poised to decline at the
largest U.S. telephone companies, Goldman, Sachs & Co. said.
The New York-based brokerage recommended creating October
AT&T and Verizon calls and puts and then selling them to other
investors. Call options give investors the right, without the
obligation, to buy shares of a company at a specified price by a
given date. Put options convey the right to sell shares. The AT&T
options should have so-called strike prices of $40, while the
Verizon strikes should be $40 and $45, Goldman said.
Read more at Bloomberg Stocks News
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