EMC Technicals

Here it is, approaching 200 day MA... Not looking good here, but well in oversold territory.  Too much overall pressure on the market...

When a Stock can Become Optionable

Options on newly issued stocks can start trading when they meet standards set by the options exchanges. At the CBOE, for example, a spokeswoman outlines the rules as follows:

· Minimum of 7,000,000 shares of the underlying security must be owned by people other than officers, directors and shareholders with more than 10 percent of the stock. 

· Minimum of 2,000 stockholders

· Trading volume has been at least 2,400,000 shares in the preceding 12 months — i.e., it needs to reach cumulative trading volume of 2,400,000. If they hit that volume level in a day, or two, or three, that would qualify.

· Market price per share has been at least $3.00 for the previous five consecutive business days preceding the date on which a certificate is submitted to the Options Clearing Corporation for listing and trading.

Happy Trading

Monday Update

RAX got hit hard after missing by a penny.  However, this was unwarranted given the report showed growth across the board.  I think others believe this as well as it is off it's lows and trending higher on 11 million volume.  Recommend 50$ Jan 13 calls.

GMCR small bounce as expected for quick profit.

Layer into EMC carefully

GOOG, set up a trade trigger to buy 600 Jan 13 Calls when GOOG breaks 600 and sell when it breaks 608 or so, pick your own targets but this has proven a good range to wash-rinse and repeat.

Happy Trading...

Looking at EMC again

Picked up 25 30 Jan 13 calls.  Once EMC can build support at 30 should see the next move up.  It's currently in the mid 28 range even through the recent turmoil days of trading...

Happy Trading...

No More Green Mountain (GMCR)

I had picked up a small covered call on GMCR at 43 and change sold the 44's. Unwound it last week for a grand.  Good timing.  The report missed expectations and with all the hype on the company it took a 40% beating to well below 52-week lows.  All the GMCR hype is what made me open the covered call as their was a good premium on the options.  Shorts made big money this morning!  400% and above in some cases.

So, the report wasn't super terrible just couldn't meet the WS expectations, so what does this mean?  Is it time to take advantage of this, is it really a20% stock, did it deserve to lose 3B in value today?

Everywhere I look there are K-Cups and Keurigs with no slow down or need to replace with a Starbucks machine.  Today may be worth picking up some LEAP Calls at a discount.

GMCR announced their hardest thing was determining demand for their product.  This may be an information arbitrage situation setting up for some quick profits!

Happy Trading!