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February 9, 2010 8:00 EST Related Symbols: CY
you're watching:
Mad About Options
An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.
Cramer puts Cypress as a top pick, but how did option investors perform on bull and bear strategies.
The Pick – Cypress Semiconductor Corp. (NYSE: CY)
On Oct. 15, CY reported an earnings loss of 13 cents a share compared to estimates of a 16 cent per share gain. The loss was due to stock option grants, so excluding those, the company posted a 10-cent gain. CY is also Jim Cramer’s favorite stocks. CY shares were trading at $10.80, up from $10 at the time of our original Mad About Options episode.
Bullish Option Trades on CY:
Bullish investors who agree with Cramer bought two December 7 calls for $2.90 and sold two December 10 calls for 50 cents in a leveraged bull call spread. Investors paid $4.80, and the spread expired with the stock at $10.55. This trade was a winner of $1.20, with the stock up 80 cents.
Bearish Option Trades on CY:
Bearish investors bought March 14 puts for $4.50 and sold March 9 puts for 70 cents, paying $3.80 per spread. The spread is now marked at $3, making this trade a loser of 80 cents with the stock up 80 cents.
