For a hedged play on Varian Medical Systems Inc (VAR) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the May. '16 $75.00 covered call for a net debit in the $71.06 area. That is also the break-even stock price for the covered call. This trade will return 5.54%, or 16.06% annualized (for comparison purposes only), in 126 days. This covered call also provides 6.57% downside protection.
The current 52-week low is $71.07 and the 52-week high is $96.67. Varian Medical System stock has been showing support around $73.67 and resistance in the $77.73 range. The stock closed Thursday's trading session at $76.06. Technical indicators for the stock are bearish and S&P gives VAR a 3 STARS (out of 5) hold ranking.