May 13, 2013 (Marketintelligencecenter.com via COMTEX) -- Agilent Technologies Inc. (NYSE:A) closed Friday's trading session at $43.63. In the past year, the stock has hit a 52-week low of $35.32 and 52-week high of $45.66. Agilent (A) stock has been showing support around $42.70 and resistance in the $44.32 range. Technical indicators for the stock are Bullish and S&P gives Agilent (A) a weak 2 STARS (out of 5) sell rating. For a hedged play on Agilent (A), look at the Aug '13 $43.00 covered call for a net debit in the $40.74 area. That is also the break-even stock price for this trade. This covered call has a duration of 96 days, provides 6.62% downside protection and an assigned return rate of 5.55% for an annualized return rate of 21.09% (for comparison purposes only). A lower-cost hedged play for Agilent (A) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Agilent (A) Jan '14 $35.00 call and selling the Aug '13 $43.00 call for a total debit of $6.86. The trade has a lifespan of 96 days and would provide 4.06% downside protection and an assigned return rate of 16.62% for an annualized return rate of 63% (for comparison purposes only). Agilent (A) has a current annual dividend yield of 1.12%.
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As of Thursday, 05-09-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
04-16-2012 for A @ $42.27.
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