Agilent Technologies Inc. (A) 11/16/09 PriceWatch Alert Bullish Price Movement

Posted: Monday, November 16, 2009 8:14 AM EDT
By: Market Intelligence Center Staff

Agilent Technologies Inc. (NYSE: A) ended the last trading session at $28.61. 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 27.28 and resistance in the 29.56 range. Technical indicators for the stock are Bullish 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 $23.76 area. That is also the break even stock price for this trade. This covered call has an 187 day duration, provides 16.95% downside protection and a 5.22% assigned return rate for a 10.19% 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 15 Call (OAE AC) and selling the May '10 25 call (A EE) for a $9.25 debit. The trade has an 187 day life and would provide 15.24% downside protection and an 8.11% assigned return rate for a 16.00% annualized return rate (for comparison purposes only). Agilent does not pay dividends at this time. [ABR-Seven Summits Research]