Stock Option Investment Advice

What’s Up With Comtech Telecommunications Call Options?

Comtech Telecommunications (CMTL) call option volume was higher than normal yesterday. Comtech’s stock investing price was also up almost 4% yesterday.

If you need some electronic communication equipment, then Comtech is the company to go to. They specialize in satellite earth station modems, over-the-horizon modems and gateways. Comtech also specializes in aviation communication products and broadband RF amplifiers.

Comtech’s competitors include: Qualcomm (QCOM), ViaSat (VSAT) and iDirect Technologies (private).

Comtech’s stock price took a big haircut in March following its quarterly earnings report. Comtech’s forward outlook was negative and its stock price reacted accordingly.

CMTL Chart

Comtech’s October, November and January call options with a 35 strike were experiencing significant stock option volume yesterday. The put option volume appeared normal, so yesterday’s heavy call option action had a bullish bias.

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The Strike of Pain for Comtech for November expiration is at the 35 strike price which is above the current stock price and also points to a bullish bias for the stock. The Strike of Pain represents the strike where the options buyers will lose the most money and the option sellers will gain the most money at expiration.

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Comtech’s next earnings report isn’t anytime soon and there isn’t much news related to the company. The company has been receiving quite a few orders for its products of late, but not enough to warrant the high call option volume. Maybe one of the big military contractors is considering acquiring Comtech. Comtech would make a nice addition to L-3 Communications (LLL). Honeywell (HON), Lockheed Martin (LMT) or Raytheon (RTN) might also be on the prowl.

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A covered call investing position for Comtech for the December 35 call option is attractive with a %if unchanged potential return of 4.3%. This return could be realized in only 60 days. The call option to sell for this position would be the December 35 call option with ticker symbol CQHLG.

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To enter the covered call investing position an investor would purchase the stocks in multiples of 100 shares and sell one call option for each 100 shares of stock purchased.

For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions’ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.

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PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.

[tags] electronic communication equipment, satellite, earth station, modems, over-the-horizon, gateways, aviation, RF amplifiers, earnings report, Strike of Pain, CMTL, Comtech Telecom. Corp., HON, Honeywell Inc., LLL, L-3 Communications Inc., LMT, Lockheed Martin Corp., QCOM, QualComm Inc., RTN, Raytheon Co., VSAT, ViaSat Inc. [/tags]

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