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.