Barclays' equity strategists back selling "put" options on Royal DutchShell's Amsterdam-listed shares, arguing the move would help enhanceyields for investors compared to merely holding the stock for future gains.
The Barclays team recommends selling a "put" option - used to bet on afuture price fall - on Shell shares with a strike price of 24 euros, due toexpire in January 2014, for an indicative premium income of 0.36 euros.
Shell's Amsterdam-listed shares are down by 0.5 percent at 24.26 euros inafternoon trading.
"Shell stands out as a rich volatility name due to its elevated impliedversus realised volatility spread, as well as an elevated implied volatilityversus its sector. The fundamental picture of Shell, rated 'overweight', iscompelling and it is one of our analysts' top picks in the sector," Barclayswrites in a note.
Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net