Australian Reporting Season & 3 Option Ideas | Raymond Chan | Finance News Network

Australian Reporting Season & 3 Option Ideas

by Raymond Chan

 
A huge day today with 66 companies reporting yesterday, please call for our research analysis during the Aussie reporting season.
 
With around 30% of S&P/ASX 200 companies having reported full-year results, numbers have been split down the middle, with 51% above consensus and 41% below. For those companies exceeding market expectation, the average beat has been 4.1%. For those that disappointed the market, the average miss has been 6.9%. Despite that, stock price reactions have been generally positive on the day, with 55% of stocks up by 5% on average, and the remaining 45% down by 4%. 
 
In June and early July, it’s the defensive stocks leading the recovery. In August, cyclical stocks have been taking the leads. The average daily volume has improved from just $3 billion to almost $3 – 4 billion over past week.
 
From our Option Trading Desk, here are the three option ideas:
 
Position One:                Sell AMC September $7.50 puts at 23 cents
Current Share Price:        $7.40
Research Target Price:        $8.45
 
Amcor's result was in-line with NPAT $635m, the company offers a defensive earnings stream, double digit earnings growth, a ~5% dividend yield and trades on a PE of 13x.
 
 
Position Two:                Sell SUN September $8.75 puts at 22 cents
Current Share Price:        $8.85
Research Target Price:        $9.52
 
Suncorp reported yesterday with the NPAT of $724m missing consensus due to an increase in the run-off of impaired assets.  They announced a final dividend of 20 cents per share and a special dividend of 15 cents per share - both fully franked.
The company produced top-line growth of 8-10% across all business lines.
 
 
Position Three:        Sell BHP September $32 puts at 61 cents
 
Current Share Price:        $33.15
Research Target Price:        $42.62
 
BHP reported yesterday afternoon - slightly higher than consensus forecasts.
 
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