ABB - ABB Ltd
BA- Boeing Company
COL - Rockwell Collins Inc.
ETN - Eaton Corporation
KFT - Kraft Foods Inc.
QCOM - Qualcomm Inc
R - Ryder Systems, Inc.
RAI - Reynolds American Inc.
RBC - Regal-Beloit Corporation
TYC- Tyco International Ltd.
UTX - United Technologies Corp
ABB - ABB Ltd - Note the different strike prices at the near and far date. SSR are good near and far date, but the days earnings at the near date are 0.10% vs 0.08% at the far date. RVI's are high.
BA- Boeing Company - The P/E is embarrassingly high but we included is based on the forward P/E. A dividend is earned at either date. SSR are good near and far date, but the days earnings at the near date are 0.08% vs 0.06% at the far date. RVI's are a little high.
COL - Rockwell Collins Inc. - A dividend is earned at either date, note the far date is in January. SSR are good far date, but the days earnings at the near date are 0.07% vs 0.04% at the far date. RVI's are ok.
ETN - Eaton Corporation - A dividend is earned at either date. SSR are ok, but the days earnings at the near date are 0.07% vs 0.06% at the far date. RVI's are HIGH.
KFT - Kraft Foods Inc. - Bedrock stock with an good profile. What is not to like?
QCOM - Qualcomm Inc - Only the far gets the dividend and the P/E's are creeping up. However, the SSR's are good either way and the near date Days earnings at 0.11% are the 2nd highest of the batch of stocks presented today. RVI's are ok as well.
R - Ryder Systems, Inc. - The P/E is 2nd highest of today's group, while the forward P/E is in range. We have previously written about the high/low P/E issue and in this end this is a personal choice as to how to handle a high/low P/E situation. We can only present and offer advice, the decision is yours. The dividend is earned at either date. Ryder systems, R is tops in today's group in Days earning of 0.15% at the near date. The RVI's are toward the rich end.
RAI - Reynolds American Inc. - A Bedrock stock with an ok profile.
RBC - Regal-Beloit Corporation - This stock has been a long time favorite of ours as it has worked well with our strategy. We like their business and operation. Note the calender spread on the options. Nothing trading between November and February at this point. The SSR's are very good as are Days earning. The near date looks much better than the far date most likely because the days spread between the two. RVI's are good as is P/E and all the other stuff we like.
TYC- Tyco International Ltd. - Another stock we have liked for a long time. Note the two different strike prices. SSR's are good and the near date Day's earning at 0.09% is high. P/E's are good and both near and far dates earn the dividend.
UTX - United Technologies Corp - Except for the high RVI's, what's not to like?
A number of the stocks we looked at today had identical profiles when selling just "in the money calls" and the next higher strike calls that are "out of the money call". We tried to chose the "in the money calls" when the RVI's were high and the "out of the money calls" when the RVI's were not high.
We have previously written on using measures like RVI's and investment associated biases. Clearly, we can justify selling "out the money calls" on high RVI stocks if the fundamental analysis indicated a price per share that should be higher. As short term tactical trades go, we opt for the highest near term return. As longer term strategies go, we would opt for the highest long term strategy when selling calls as we expect the underlying price to increase, placing our focus on the Return if called numbers. Again, these are judgment calls and in this forum we are only present analysis and placing focus on the highest near return.
*Note: the tables shown are embedded .jpg files. This means that you can: 1) double left click them with your mouse to enlarge them, or 2) right click them with your mouse and choose to open them in a new window or tab, print, save, etc.
As with everything we post, we may or may not have the stock and/or strategy in place in any one of our portfolios or may add it at any time. We do not make any buy or sell recommendations. We provide basic analytical research, some short commentary of the results and encourage you to do your own thorough due diligence prior to any purchase or sale.
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