Summary In early February I recommended a short-term conservative option strategy on the basis that I viewed ADP as being richly valued. A comparison of ADP’s current valuation relative to the FY2011 – FY2018 timeframe suggests ADP continues to be overvalued. Shares have pulled back from a 52 week high following the recent release of [...]
I view the Canadian National Railway Company (CNR) as a core long-term holding. CNR's current valuation relative to 2011 - 2018 levels, however, suggests that shares are currently richly valued. If you are in agreement then the two conservative option trades presented in this article might be of interest to you. Summary The number of [...]
Summary Following the release of MSFT’s Q3 2019 results, the share price has risen to its highest level in years. I view MSFT as a high quality company worthy of being a long-term investment. Using a couple of valuation metrics I view shares as currently being slightly overvalued. I present low-risk options strategies from which [...]
NOTE: I go to the gym daily and now see several of the television monitors tuned to business news channels which gym members are closely monitoring during their workouts. When I see this type of behavior I get visions of the dot.com bubble. In my opinion, a broad market pullback is not out of the [...]
The Hershey Company's (HSY) share price has appreciated rapidly in a very short timeframe for no justifiable reason. A Bear Call Spread option strategy can be employed if you think HSY is overvalued and its share price will pullback. Summary HSY released Q1 2019 results on April 25, 2019 and its share price jumped $5.37 [...]
Summary PEP released its Q1 2019 results on April 17, 2019 and the share price jumped to a new 52-week high. I view PEP as richly valued considering it is a mature company in the low growth packaged foods industry. My opinion is that an overall market pullback will occur within the next 6 months. [...]
Summary GS released results April 15, 2019 and its share price took a beating. I am not prepared to bet against GS and am of the opinion there is a reasonable probability the share price will rise over the next few months. I am currently long GS and have initiated a Bull Put Spread to [...]
Nike, Inc. (NKE) is a great company in which I intend to hold shares for the long-term. In early February 2019 I wrote out of the money covered calls on the underlying shares I own. Shares have experienced a roller coaster ride subsequent to early February and are now trading a few cents/share above my [...]
In this Mastercard Incorporated (MA) article I provide an example where, through the use of options, it is possible to come out ahead even if your original call is wrong. In my February 4, 2019 article I provided details on covered call transactions I had initiated; I generated $2.43/share on the MA options. Mastercard Incorporated’s [...]
Summary I am of the opinion there is still more upside to Chevron Corporation’s share price. This conservative option strategy provides you with the opportunity to augment your dividend income while minimizing risk. You own the underlying shares during the term of the option contract so you continue to receive your quarterly dividend. This article [...]
