Shareholders of International Game Technology looking to boost their income beyond the stock's 3.5% annualized dividend yield can sell the January 2016 covered call at the $15 strike and collect the premium based on the 95 cents bid, which annualizes to an additional 4.6% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 8.1% annualized rate in the scenario where the stock is not called away. Any upside above $15 would be lost if the stock rises there and is called away, but IGT shares would have to climb 18.7% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 26.2% return from this trading level, in addition to any dividends collected before the stock was called.
In short, averaging down is one of the riskiest possible actions.
What can we learn from this failed trade?
Amazon.com is taking a rest after two strong up days.
I wonder if the people who say this on TV have even looked at what the average stock has done lately.
Spice up your portfolio with some takeover bait.
Cramer is no fan of Consol Energy, loves Bristol-Myers and recommends Baidu.
The Great Recession of 2008 has had a continued impact on our society, Cramer says.
I've nibbled at Priceline, International Game and Yahoo.
I expect to see a $16-to-$19 price for IGT again within 12 to 15 months.
While I think we can rally again sometime early next week, this concerns just the short-term outlook.
Major U.S. stock markets slide Wednesday amid poor Chinese economic data and a 14.5% month-over-month drop in U.S. new-home sales.
International Game Technology (IGT) stock is slipping on Wednesday after the company slightly beat earnings estimates after warning of lower sales and profits in March.
Trade-Ideas LLC identified International Game Technology (IGT) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate
Trade-Ideas LLC identified International Game Technology (IGT) as a post-market leader candidate
My guru strategy is quite impressed with these slot-machine makers
That's what 2014 is shaping up to be.
IGT is trading in the $13s at 52-week lows, so what gives?
If a new quarter were not just beginning and the market not short-term oversold, I would call the action in momentum names outright bearish.
Trade repair techniques can salvage an older position
Two analysts cut their target prices and earnings per share estimates on International Game Technology (IGT). UBS reduced its target price to $15 and set a "neutral" rating. The firm said downside is driven by product sales with market share pressure and decline in replacement sales. Credit Suisse reduced its target price to $12 and set an "underperform" rating given the company's new guidance.
Here's a look at how some of the most active stocks on the market today are trading technically.
Trade-Ideas LLC identified International Game Technology (IGT) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate
Casino games developer International Game Technology (IGT) is plunging on Wednesday after management cut previously-issued earnings guidance and warned of a workforce reduction.
Even though it would be great if Yahoo! still owned 40% of Alibaba, its investors should thank their stars the old board didn't give the whole thing away.
International Game Technology (IGT) is plummeting in post-market trading Tuesday after cutting its previously-issued guidance and warning of layoffs.
Trade-Ideas LLC identified International Game Technology (IGT) as a post-market laggard candidate
A buy-write play on International Game Technology is one approach.
Credit Suisse cuts its price target for International Game Technology (IGT) to $14 and reiterates its 'underperform' rating.
International Game Technology (NYSE:IGT), a global leader in gaming systems technology, and DoubleDown Casino, the world’s largest social casino, today announced new data revealing female poker players’...
