This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rent Colgate-Palmolive For Free Instead of Buying

NEW YORK (TheStreet) - New York-based Colgate-Palmolive (CL - Get Report) made a new 52-week high last week, and if you're not long you may want to take another look. I'm going to show you how to capture all the upside without exposing your portfolio to all the risk.

Colgate-Palmolive, together with its subsidiaries, manufactures and markets consumer products worldwide. You may know the company for its toothpaste products, but it markets a wide range of products including pet supplies. It's stock, currently trading around $65, is down nearly 1% for the year to date.

CL Chart

Colgate-Palmolive hit my radar because of several factors. Strong revenue growth, dividends increase 300% during the last 10 years, bottom-ling earnings per share that support a rising stock price, and the company is about to distribute a fat dividend.

The company pays an oversized yield of 2.25% and the next ex-dividend date is April 17. Others may buy shares, but I'll show you another strategy to profit if the stock moves higher between now and the ex-dividend date. By using options and specifically in-the-money call options, investors can rent Colgate-Palmolive for almost free until April 16.

Call options give the buyer the right but not the obligation to buy a stock within a set period of time at a set price. Many factors influence the price of options including the underlying price, implied volatility, time until expiration, and interest rates, and dividend payments. I posted a Real Money Pro trade idea for Colgate-Palmolive for your review if you want exact entry and exit points.

CL Revenue (Quarterly) Chart

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CL $71.75 0.39%
AAPL $92.52 -0.77%
FB $119.18 1.20%
GOOG $710.79 1.30%
TSLA $214.29 1.30%


Chart of I:DJI
DOW 17,714.82 +54.11 0.31%
S&P 500 2,055.33 +4.70 0.23%
NASDAQ 4,728.7690 +11.6750 0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs