Tuesday, January 3, 2012

EMC corp

This company is a very good candidate for a short position.  I think it will test 20$ in the coming weeks and if it breaks the 20$ ... well it's going to go fast to 18$

I would suggest playing the downside via options.  I'm looking at the cheap July 20$ strike PUT trading at around 1.18$

For the less adventurous, the Bear Call spread would be a great way to play it.  You could for example short the ATM Feb 22 call and buy the OTM 24 call.  This trade is a net credit ... less risk, less payoff, higher probability of paying off.




The July 20 Put is a good buy.  The implied volatility isn't very high.



You could also play it by shorting ATM calls and buying OTM calls on a short maturity.


Cheers
The Imperatore

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