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NICE Systems Ltd (NICE) 37.10 up 0.59...

STRATEGY: Look at the November 35 covered call. For each 100 shares of NICE Systems Ltd (NICE) stock you buy, sell one November 35 covered call option for a 32.85 (37.10 - 4.25) debit or better. That's potentially a 6.5% assigned return. IK -> COMMENT: The technicals for NICE are bearish with a possible trend reversal. The stock is under accumulation with support at 36.16. S&P rates this stock 5 STARS (out of five) - strong buy. RISK: The stock has to drop 11.5% to threaten the breakeven point. This trade rates 4 keys out of 5 - low relative risk. S&P RESEARCH NOTES: S&P maintains strong buy opinion on shares of NICE Systems (NICE). While Q1 non-GAAP EPS of $0.57 was stronger than our $0.54 forecast, we maintain our '12 EPS estimate of $2.45 and our 12-month target price of $45, based on historical analysis. We are encouraged by enterprise revenue growth and see NICE's support for regulatory compliance requirements as a key driver. However, we now expect full year operating margins to hold steady instead of expanding modestly, due to investments. We see EPS expanding to $2.75 in '13. Despite some risks, given its strong cash flow generation to support share buybacks, we view NICE as compelling.