Agilent Technologies Inc. (A) 10/29/09 PriceWatch Alert Support Down To $24.90

Posted: Thursday, October 29, 2009 8:46 AM EDT
By: Market Intelligence Center Staff

Agilent Technologies Inc. (NYSE: A) closed yesterday at $25.32. So far the stock has hit a 52-week low of $12.02 and 52-week high of $29.38. Agilent stock has been showing support around 24.90 and resistance in the 25.92 range. Technical indicators for the stock are Bearish and S&P gives A a positive 4 STAR (out of 5) buy rating. A appears on the Investors Observer Volume Leaders list. For a hedged play on this stock, look at a May '10 25 covered call (A EE) for a net debit in the $22.49 area. That is also the break even stock price for this trade. This covered call has a 205 day duration, provides 11.18% downside protection and an 11.16% assigned return rate for a 19.87% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the A Jan '11 20 Call (OAE AD) and selling the May '10 25 call (A EE) for a $4.17 debit. The trade has a 205 day life and would provide 4.54% downside protection and a 19.90% assigned return rate for a 35.00% annualized return rate (for comparison purposes only). Agilent does not pay dividends at this time. [THA-Seven Summits Research]