Zacks' Voice of the People highlights opportunities with Zacks' Voice of the People highlights opportunities with Amtech Systems, Coherent, Keynote Systems and Telestone Tech
February 17, 2011 - RELATED TICKERS: Amtech Systems (ASYS - Snapshot Report), Coherent Inc. (COHR - Snapshot Report), Keynote Systems (KEYN - Snapshot Report) and Telestone Tech (TSTC).
Instead of just going long these stocks, I'm going to use options to try to get a good return with less exposure to risk.
Let's start with Amtech Systems (ASYS - Snapshot Report). I'm buying 3 March 19 calls @ $25 for $510 and 3 March 19 puts @ $22.50 for $270. My total cost is $780. To buy the stock my cost for 300 shares would've been $7374. To profit I need the stock to either be higher than $27.6 or lower than $19.9 by March 19.
Next is Coherent Inc. (Nasdaq: COHR - Snapshot Report). I'm buying 3 March 19 calls @ $65 for $390 and 3 March 19 puts for $435. My total cost is $825. To buy the stock it would've cost me $18357 for 300 shares. To profit I need the stock to be higher than $67.75 or lower than $57.25 by March 19.
Third I've got Keynote Systems (KEYN - Snapshot Report). I'm buying 6 March 19 calls @ $20 for $360 and 6 March 19 puts @ $17.50 for $510. My total cost is $870. To buy 600 shares of the stock my cost would've been $11100. To profit I need the stock to be higher than $21.45 or lower than $16.05 by March 19.
Lastly I've got Telestone Tech (TSTC). I'm buying 10 March 19 calls @ $10 for $400 and 10 March 19 puts @ $7.50 for $600. My total cost is $1000. To purchase 1000 shares of this stock my cost would've been $8460. To profit I need the stock to be higher than $9.46 or lower than $6.46 by March 19.
My total cost for these 4 picks is $3475. To go long on the same volume of stock I would've spent $45291. The problem with this strategy is that I need significant moves to make money. For ASYS I need 12% up or 19% down. For COHR I need 10% up or 6% down. For KEYN I need 16% up or 13% down. And for TSTC I need 11% up or 23% down.
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Read the full analyst report on ASYS
Read the full analyst report on COHR
Read the full analyst report on KEYN
Read the full analyst report on TSTC

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