Now that we have the $NTAP earnings behind us, I wanted to look at others in the sector/industry for opportunity. The two stocks I have been watching today are $FFIV and $EMC. I have already started a 1/2 position in $FFIV at 109.
For $EMC I have been watching the $24 level and the small gap down to 23.64 that is within reach. Since it is likely that the Bears would want to fill the gap, given it is so close, I wanted to come up with a trade that lets me get in now – and not worry about the gap fill, overshoot, undershoot etc.
So this is what my plan is:
- Sell the June 24 Put for .78 cents
- Buy the June 25 Call for .39 cents
I have sold the puts already and will ease in to buying the calls once the gap fill players show their play.