A New ‘Sky High’ Recommendation and Booking Big Option Gains

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)

1. 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.

2. 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.

3. 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.

4. 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.

5. High-Quality Stock

The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.

6. 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).

7. Share Buybacks

The company’s outstanding shares have been reduced by at least 5% in the previous year through share repurchases.

8. 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