Agilent Technologies Inc. (A) Rose 1% Yesterday With Bullish Technicals And Positive 4 STARs S&P Rating

Agilent Technologies Inc. (NYSE: A) closed yesterday at $27.59. 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 27.34 and resistance in the 27.86 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 Feb '10 25 covered call (A BE) for a net debit in the $23.84 area. That is also the break even stock price for this trade. This covered call has a 128 day duration, provides 13.59% downside protection and a 4.87% assigned return rate for a 13.88% 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 10 Call (OAE AB) and selling the Feb '10 25 call (A BE) for a $14.55 debit. The trade has a 128 day life and would provide 11.02% downside protection and a 3.09% assigned return rate for a 9.00% annualized return rate (for comparison purposes only). Agilent does not pay dividends at this time.

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