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Friday, January 9, 2009

PALM Lookin' HOT

Today I was finally able to write my PALM common shares out for the MAY $7.50. I have a cost basis of $1.18 on PALM and received $30 per contract to sell it for $7.50 in May. If this new phone the "PRE" is a huge hit, we could see PALM rocket past $7.50. Like Buffalo Wild Wings PALM has huge short interest, and a short squeeze could push this stock much higher! If Palm can just pull a positive quarter, we could see a massive rally. A week or so ago there was a $100 Million private investment in PALM. and personally I think there could be more to come. For those speculators out there, looking at a long Call out of the money could seriously pay off. One could purchase the LEAP 11 $5 CALL for$155 per contract, and if PALM was to be profitable by then it could easily be a $15 stock. The future of PALM relies on this new phone, and I am confident in the company, considering they have some top X Apple employees now. I do not think Palm will reach $7.50+ by May considering the amount of debt the company has, but it could come close. I took my premium today hoping I made the right move, but a near 35% pop today forced me to make that decision. In a sick way I don't want to be called out (and take a near 700% gain) on my PALM because I am bullish on the future of the company!


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