Thom, Kevin, and anyone else interested in IDTI and SYMC
About IDTI...what I referred to yesterday was a pre-announcement of lower earnings to be reported. Kevin posted the particulars in #220. I've noted the stock has dropped to 10+ intraday during the last two days, and if the book-to-bill is poor next week there may be more weakness in the stock. I don't expect it to go below 9+ (but charts have lied!) and at that price it might be worth it to buy a bunch if you have the cash. Buying options on this make me a bit nervous because of the time element since no one knows when the market sentiment for semis will turn positive again. However, selling options is a different story. I wouldn't mind selling a bunch of puts, strike of 10, and collecting the time premium until market sentiment turns. Or, reserving a sub-10 price for my shares.
About SYMC ... the reason I'm waiting close to or until after next earnings report is that earnings will be zilch. Since they announced all this in January when the stock dove from 17 to 10, this fact should be discounted into the price. And by summer, companies should be migrating their systems in full to Windows NT (forget about Windows 95) and will need symantec's utilities. Thus, in this case I'll buy calls once I see upward movement, maybe using money from selling some puts. Again, a outright purchase of the stock might be better and we wouldn't have to worry about time. Remember, SYMC tanked from 28 to 10 with no change in fundamentals and all based on lower than expected earnings for two quarters. Again, Kevin and his Bloomberg has posted the particulars for us. Thanks, Kevin.
Thom, if I remember, you already got some Jly 12 3/8 calls for SYMC.
If stock prices really reflect the market's expectation six months into the future, those options should do fine.
Keep me posted on IDTI and why you think it won't languish for a year or more.
Also, does anyone know what the book-to-bill will be and when it's announced?
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