We continue to prefer the long side of Crown Resorts and view the stock as a suitable “buy-write” strategy for client portfolios.
$14.01 (Euro) Dec call options generate an additional $0.50 of income per share.
Crown Goes ex-dividend $0.30 on the 21st September.
Crown Resorts
BlueScope has upgraded 2H EBIT guidance to US$680m, this leads to consensus FY18 EBIT of US$1.2bn.
The upgrade driving higher profitability is due to stronger steel spreads in the US.
Bluescope was added to the ASX 100 model on the 6th February and is currently up 26%. 
We consider Caltex a buy at $31 and recommend selling covered call options to enhance the income.
Caltex goes ex-div $0.60 on the 11th of September.
Our Algo Engine generated a buy signal in Tabcorp at $4.20 and we expect to see the share price trading in the $5.00+ range, following the August earnings result.
We’ve been holding Crown Resorts following the recent Algo buy signal at $12.41, back in February.
Crown has a renewed focus on cost control and the supportive back drop of a lower Australian dollar, as well as, increased inbound tourism should lead to the August earnings result surprising on the upside.
Crown goes ex-div $0.30 on the 21st September.
Our Algo Engine generated a buy signal in Graincorp on Friday, following the price action forming a “higher low” pattern at $7.58
We suggest buying GNC with stop-loss below $7.55
We expect the major banks to begin forming “lower high” patterns in the near-term and the Algo sell signals should be observed.
We advise holders of bank stocks to either sell covered call options and enhance the yield, or take the opportunity to rebalance portfolios from any overweight exposure to the sector.
The S&P/ASX 200 Index finished the week up 0.88%.
The best performing sector was the Materials sector, up 3.0% and the worst worst performer was the Telecoms sector, down 1.0%.
The XJO looks over-extended and ready for a pullback.
Link Administration has been sold off following the Federal Budget measures aimed at increasing consolidation of inactive super accounts.
Although the announcement now creates a headwind for Link from FY20, we consider the stock “oversold”.
We suggest investors can accumulate Link at or near $7.00 support.
Link
Our Algo Engine triggered a recent series of short signals in IRE.
In a strong market, Iress may trade as high as $11.50, however, we feel the stock is overvalued and likely to soon resume the downtrend.
The initial downside target is currently near $10.00.
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