Get Rich - Stay Rich - Investing for Monthly Income

Posts Tagged ‘stock option’

Covered Call Write on Agilent Technologies (A)

Below is the option strategy for a covered write on Agilent Technologies (A).  This will produce monthly investment income over a 30 day time period.

OPTION STRATEGY:

Look at the December 2011 39 covered call.  For each 100 shares of Agilent Technologies (A) stock you buy, sell one December 2011 39 covered call option for a 37.65 (39.85 – 2.20) debit or better.  That’s potentially a 3.6% assigned return in 30 days or comparable to a 43.8% annualized return.

TECHNICALS:

The technicals for A are bullish with a weak upward trend. The stock is under accumulation with support at 37.03. S&P rates this stock 4 STARS (out of five) – buy.

RISK:

For investors seeking more downside protection, buy the May 2012 37 PUT for $4.50.  Sell the put when you exit the covered call trade.  The PUT protection is optional and not required to place the covered call trade.

RESEARCH NOTES:
S&P maintains buy opinion on shares of Agilent (A).  Oct-Q adjusted EPS of $0.84 vs. $0.65 is $0.04 ahead of our estimate.  Sales rose 10%, slightly below our 11% forecast.  Electronic measurement gained 12%, Chemical Analysis increased 4%, and Life Sciences grew 9%.  We are encouraged by the solid growth in Life Sciences, but see continued uncertainty in the U.S. government and academic end-markets. Agilent (A) indicated surprisingly stable and improving European academic markets.  The company guides FY 12 (Oct.) sales of $6.85B-$7.15B and EPS of $3.00-$3.35, in line with our estimates.  We keep our 12-month target price at $48.
Covered call write on Agilient Tecnology

Click to enlarge

Want To Create A Second Income?

Louisville, KY, October 28 2011 – Get Rich Investments, an online leader in helping individuals to create income producing investments, has a newsletter to guide investors seeking a second income.  This is one of the most valuable tools for investors to learn how to create monthly income from stocks and option strategies.

Does the idea of using an income investing strategy to create a second income every month on your funds appeal to you?  Get Rich Investments has created the Get Rich Monthly Income Plan to teach individuals how to create multiple streams of investing income.  This is a low-cost newsletter providing the following services:

    1. A list of CEFs (closed-end funds) that pay monthly dividends month after month. These investments can pay more than 10% annually and can sometimes be purchased at a discount to net asset value.
    2. A list of covered call trades consisting of high quality stocks such as the S&P 5-star research rating of the best stocks that are recommended as strong buys. These lists are updated each week with select trades added daily.
    3. Low risk investments to minimize market risk and to prevent your portfolio from taking a big lost in such uncertain market environments like we are experiencing today.
    4. We have created a strategy called the Blanket Put that will protect your investment from market downturns. The Blanket Put is your safety blanket to protect your portfolio from market downturns. This is worth the membership fee by itself.
    5. Access to multiple education resources to better learn how to be a more successful investor. Trades don’t end when you make a stock buy, sell a call, or complete the trade. Here we want members to be educated about how to manage a trade and when to take action.

The Get Rich Monthly Income Plan diversifies risk by seeking multiple streams of income. You can create monthly income by: covered call trades, covered LEAPS, calendar spread trades, monthly dividend CEFs and dividends from owning high quality, conservative stocks. That is 5 streams of income from this simple list as we focus on “cash flow” to the investor to improve your quality of life.

We have more than 20 years experience in the markets including trading covered calls and monthly income investments.  In addition, we have Masters in Business Administration (MBA) from a top business school and other experience in corporate finance and strategy.  We have authored several books including the original Get Rich – Stay Rich: Investing for Monthly Income that is currently on sale at Amazon and other bookstores around the world. It is important to you that your monthly income is in qualified, experienced investor hands who can be trusted to deliver the best trades.

Learn more about investing for income.

Covered Call Trade Recommendation on Celgene (CELG)

This is a covered call trade for monthly income on Celgene (CELG) using stock and call option with optional protective put.

Covered Call TRADE: Look at the November 2011 65 covered call.  For each 100 shares of Celgene (CELG) stock you buy, sell one November 2011 65 covered call option for a $61.05 (63.35 – 2.30) debit or better.  This is potentially a 6.5% assigned return.

Blanket Put:  If you are looking for a blanket put for protection, look to buy the Apr 2012 60 Put for $5.00.  You will sell the Blanket Put when the covered call position is closed.
Stock Trend: The technicals for CELG are bullish with a weak upward trend.  The stock is under accumulation with support at 61.63. S&P rates this stock 5 STARS (out of five) – strong buy.

S&P research notes:

S&P maintains strong buy opinion on shares of Celgene (CELG) . CELG updates information related to Article 20 European review of Revlimid that resulted in a positive risk/benefit ruling in September. CELG cites secondary malignancy rate of 3.98 per 100 patient years (vs. 1.38 in control group) in prior treated multiple myeloma patients, and 7% rate in newly diagnosed patients (vs 1.8% in control). While higher than we anticipated, we expect drug’s label to reflect these risks, and still see the positive bias on Revlimid’s survival benefits positioning the drug for approval in earlier treatment stages, which we view as a key share catalyst.

Get more trades by subscribing to Get Rich Monthly Income Plan.

Share Some Winning Cash
Archives