by Houghton and Atkeson 09/30/08
On Sept. 26, Jabil Circuit (JBL) reported essentially an in-line quarter with slightly weaker guidance. After a very short-term bounce, the stock dropped with the market back to its March 27 low which may be a double-bottom.
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The company's LCD TV business has been a huge drag on earnings performance. Some analysts believe there is a possibility the company could sell its LCD TV business which would serve as a positive catalyst.
Today, option investors are buying more than 11,000 JBL Dec 12.50 Calls (JBLKV). With earnings behind the company, a double-bottom holding for now and almost 40% upside to the option strike price, this option action warrants some consideration.
Dawn Pennington
Read This Before You Buy Another Stock
A savvy stock position can start with a single options trade.
This technique can help you breathe a sigh of relief as it aims to relieve a 'choking' portfolio.
If you are familiar with buying calls and puts, we'll show you how to buy them even cheaper.
Anatomy of a Stock Option Ticker
Option tickers may look like a bowl of alphabet soup to you, but each letter means something.
You don't have to short stock to put a bearish bet on the table -- but the path to profits comes with different levels of risk.
