We hold Caltex (CTX.ASX) across most client portfolios from lower price levels. The algorithm engines triggered the entry signal back on 8th of July when CTX.ASX was trading at $32.00.
Our target was $34+ with a view towards selling covered calls at this point to then achieve an average exit price in the range of $36 to $37 or on a stand still basis, (or unexercised), 10% per annum cash flow from the dividend and option premium.
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The investment continues to perform as expected.
FY17 forecast EPS of $2.15 with a forward yield of 3.3%. Underlying growth 5 – 7%.
Chart – CTX.ASX
