Wednesday, January 20, 2010

Some names I am watching...

1) IBM--they just reported a great qtr and gave upside guidance going into FY2010. They are looking for earnings of at least $11 per share. They are currently trading at about $130 with a P/E close to 12 for FY2009. They have a forward P/E of 11. Will be watching how this thing acts as it pulls back to its 50 day MA at 128.91. Leaning towards selling Mar or Apr $125-$130 puts.

2) STEC--After making a run to $20, my initial target from previous trades, it is making a significant pullback. There is also chatter that IBM might be interested in buying STEC. Looks like it could retrace back to about $15 a share near its 50 day MA at 14.63. Not sure how I will play this yet, but I am interested.

3) RIMM--still watching this one. Would like to sell the Jan '12 puts that I bought back last week once I see a bottom in this name.

4) DRYS--Alread initiated a third of what I am willing to hold in this name. Still pulling back.

5) STLD--This made a run to a 52 week high above $20 and is now trading near 17.50.

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