Your Alpha Algorithm portfolio continues to perform well, in large part thanks to its high weighting in red-hot technology stocks.
With the U.S. stock market at the top end of its trading range, I am recommending that you both book three more option gains and raise your stops to lock in five more double-digit-percentage gains in your stock positions.
This week’s new Alpha Algorithm recommendation is The Boeing Company (BA) — one of the world’s major aerospace firms. Founded over a century ago in 1916 and based in Chicago, the company operates in three principal segments: commercial airplanes; military aircraft and missiles; and space and communications.
The Boeing Company (BA) versus the S&P 500 over the last six months.
Eight Top Investment Strategies Betting on The Boeing Company (BA)
- Large-Cap Momentum
The stock is part of a major hedge fund’s systematic strategy that invests in large- and mid-cap U.S. companies with positive momentum and that rank in the top third of total return over the prior 12 months, excluding the last month.
- Insider Sentiment
The company is one of 100 equally weighted U.S.-listed large- and mid-cap stocks chosen based on trading in company stock by corporate insiders, price momentum and trailing 12-month volatility. Specifically, this strategy looks at the increase in insider holding.
- Large-Cap Alpha Growth
The company has been chosen as part of an alpha-seeking index that selects and weights growth stocks from the S&P 500 Growth Index. The proprietary methodology uses price appreciation — among more traditional factors — and weights the constituents based on their respective growth scores.
- Pure Growth
The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.
- High-Quality Stock
The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.
- Capital Strength
The stock is part of a strategy that seeks to outperform the market by selecting companies based on the strength of their balance sheets, long-term debt ratios and return on assets (ROA).
- Share Buybacks
The company’s outstanding shares have been reduced by at least 5% in the previous year through share repurchases.
- Fundamental Strength
The company is a top U.S. stock based on fundamentals measured by book value, cash flow, sales and dividends.
Recommendation
Buy The Boeing Company (BA) at market today. Place your initial stop at $174.00.
Options
If you want to play the options, I recommend the BA August $190 calls (BA170818C00190000), which last traded at $5.36 and expire on Aug. 18.
Portfolio Update
Booking Option Profits
This week I am recommending that you book gains in three option positions.
Sell one-half of your Amphenol (APH) July $70 calls for a 55.65% profit.
Sell all of your Johnson & Johnson (JNJ) June $125 calls for a 54.13% gain.
Sell all of your remaining Visa (V) June $90 calls for a 73.08% gain.
Raising Stops
Raise your stop in Nvidia Corporation (NVDA) to $141.60 to lock in at least a 25% gain.
Raise your stop in Alphabet, Inc. (GOOGL) to $962.50 to lock in a 20% gain.
Raise your stop in Amazon.com (AMZN) to $968.00 to lock in at least a 15% gain.
Raise your stop in Applied Materials (AMAT) to $44.90 to lock in at least a 15% gain.
Raise your stop in Charter Communications (CHTR) to $335.00 to lock in at least a 10% gain.
Sincerely,
Nicholas A. Vardy
