Options Trader: Midday Picks

Includes: DELL, GLW, TXN
by: Philip Davis

These are two selections we are currently tracking:

The price of big-screen TV's is down 40% this year but sales are up 10%. I'm no math wiz but doesn't that mean more units must be being sold? If that's the case -- and I don't know much about engineering either -- but aren't TV's made of stuff? Who do we know who makes stuff that goes in TVs? Texas Instruments Inc. (NYSE:TXN) Apr $27.50s are still a buy at $3 (down .35) and Corning Inc. (NYSE:GLW) May $20s were picked up yesterday for $1.20.

Is it safe to get back in the water with Dell Inc. (NASDAQ:DELL)? That's one train I'd hate to miss, so I think we should at least pick up the May $27.50s for $1.65 to test the water with the new management moves. I don't think they've solved anything, but what matters is what investors think, and the stock is running right into the rising 50 DMA at $25.50 which will give us a cheap exit signal if it fails.

Texas Instruments Chart 20 12 06 Corning Chart 20 12 06 Dell Chart 20 12 06

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