Imation (IMN) acquires Nexsan for $120M and this means puts are the order of the day.
Imation has actually been on a downtrend and it is at its 52 week low, but this does not matter. It is the big acquisition that matters for stock traders. Acquisitions of this scale are a good opportunity to trade options as they give you the chance to make money fast with some certainty. An acquiring company (in this case Imation) usually will see its stock dive after an acquisition for a number of reasons. I would do weekly and even hourly puts on Imation above its current trading price of $3.83 a share.
eBay (EBAY) headed for bull flag breakout
This is the prime example of a breakout stock and you want to buy calls at the current trading price of $52ish as several Wall Street analysts are very bullish about this ecommerce giant stock. The fundamentals have basically made analysts give eBay a buy rating with a P/E ratio of 18.05 and EPS 2.93. The EPS growth over the last year has been good with a 21.62% growth rate in 3Q12. Profit margins have also been impressive with 17.54% figure in Q3 2012. The figures look better than Amazon (AMZN) and you know how bullish I was on that.
Analysts fully well expect eBay to beat its earnings expectations in its next big event which is the Q4 earnings report on January 18, 2012.